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Title: Heft „1869 I Heft“. III. Money Market Review 1868, März–November
Description: Marx’ Exzerpte aus der „Money Market Review“ vom 14. März bis 14. November 1868, im „1869 I Heft“.
Author: Karl Marx
Date: 1869
URL: https://marxismo.school/archivo/marx-engels/originales/1869%20Heft%20%E2%80%9E1869%20I%20Heft%E2%80%9C.%20III.%20Money%20Market%20Review%201868%2C%20M%C3%A4rz%E2%80%93November
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*Nach der Handschrift, MEGAdigital (MEGA² IV/19).[^lic] [Traducción al español](https://marxismo.school/archivo/marx-engels/1869%20Cuaderno%20%C2%AB1869%20I%20Heft%C2%BB.%20III.%20La%20Money%20Market%20Review%20de%201868%2C%20marzo-noviembre)*

### March 14, 1868.

#### Board of Trade. Railway Returns up to end of 1866.

| A) Capital authorised by Parliament up to close of 1865 |  |  |  |
|---|---|---|---|
|  | Shares | Loans | Total |
| England and Wales | £357,496,302 | £119,714,054 | £477,210,356 |
| Scotland | 48,742,293 | 16,303,523 | 65,045,816 |
| Ireland | 26,650,650 | 7,384,841 | 34,035,491 |
| Total | £432,889,245 | £143,402,418 | £576,291,663 |
| B) Capital authorised at the end of 1866 |  |  |  |
| England und Wales | £388,605,689 | £129,762,809 | £518,368,498 |
| Scotland | 50,104,794 | 17,024,623 | 67,129,417 |
| Ireland | 27,441,150 | 7,625,341 | 35,066,491 |
| Total | £466,151,633 | £154,412,773 | 620,564,406 |
| Increase in 1866: | £33,262,388 | 11,010,355 | £44,272,743 |

C) Capital paid up at 31 Dec. 1865

|  | England and Wales. | Scotland. | Ireland. | Total. |
|---|---|---|---|---|
| Ordinary Cap. ohne priority | £186,939,352 | £18,307,847 | £14,350,997 | £219,598,196 |
| Debentures (terminable loans) | 80,420,076 | 11,636,265 | 5,764,756 | 97,821,097 |
| Preference Capital | 99,930,392 | 19,055,152 | 5,277,931 | 124,263,475 |
| Debenture stock or funded debt | 12,315,007 | 1,206,768 | 273,600 | 13,795,375 |
| Total | 379,604,827 | 50,206,032 | 25,667,284 | 455,478,143 |

D) Capital paid up at 31 Dec. 1866.

|  | England and Wales | Scotland | Ireland | Total. |
|---|---|---|---|---|
| Ordin. Cap. ohne priority | 193,674,973 | 19,797,076 | 14,773,580 | 228,245,629 |
| Debentures (terminable loans) | 86,659,720 | 12,566,082 | 5,840,061 | 105,063,863 |
| Preference capital | 109,322,884 | 19,460,908 | 5,671,306 | 134,455,098 |
| Debenture stock or funded debt | 12,566,697 | 1,254,732 | 284,165 | 14,105,594 |
| Total | £402,224,274 | 53,078,798 | £26,569,112 | 481,872,184 |

Authorised Railway Capital end 1866: 620½ mill. (round numbers), wovon nearly 482 mill. actually raised. This is irrespective of money raised on simple contract, such as balances due to bankers, accounts unpaid to lawyers, contractors, and others who supplied money, labour, or materials for the purposes of the various Cos. The 482 mill. do not include money raised upon *„Lloyds’ Bonds“*, these being securities not directly authorised by Parliament. Vgl. 1866 mit 1865 raised 26½ mill. und as indicative of the growth of distrust, nur 8¾ mill. in ordinary stock, 17¾ mill. in the forms of priority stock. 1866 was with railways a year of pawning and borrowing, and creating securities mit rights in priority of the ordinary stockholder.

#### Overend et Gurney, Co. Meeting of Shareholders 13 March. (Für Proceedings against Directors.)

*Mr. Linklater* , the solicitor said, had now come out that at the time of the transfer to the Lim. Co. of the business there were *3 deeds* prepared and executed between the partners of the old firm and the directors of the new Co. Only one of them, the *deed of transfer*, accessible to intended shareholders; the *deed of arrangement*, which would have disclosed the absolute insolvency of the old firm, being held back as a private or secret deed. In the 1st deed the partners of the old firm guaranteed that the assets should realise 20s. in the £ upon the debts and liabilities transferred. By the 2nd deed it was made apparent [that the assets] were not likely to realise anything of the kind, and that they might fall short to the extent of 2 or 3 mill., and the partners therefore covenanted with the Co. to make good the too probable deficiency out of their private estates. But this deed stipulated that whatever might be the exigencies of the Co., they should not be entitled to call upon the partners to make good the deficiency before the end of 1868. To that provision, *Henry Ford Barclay* , before he consented to join the lim. co., took exception; and to meet these objections, another deed was prepared at the last moment, providing that in certain events the stipulations of that deed in reference to those deficiencies should be in some way modified and relaxed. All this, as Linklater said, showed that the parties were aware at the time of the issue of the prospectus that the statements it contained, and the prospects it held out, were false and delusive and therefore fraudulent.

### March 21, 1868.

#### Railways. Their Construction and Management. Paper read by R. F. Fairlie, Society of Arts, 18 March ’68. (Wear and Tear)

Paying portion of the load does not exceed 5% of the whole weight of the train … As to *engines*, costs to be reduced: first, by abolishing the tenders, and next, by amending the construction of the locomotives themselves, so that their weight may not only be lessened, but better distributed. A better distribution of the weights of the boiler over a larger number of wheels, with adjustments to meet and neutralise inequalities in curves and gradients, would prevent injurious impact upon the rails, and so save wear and tear to rails, wheels, and boiler. Every traveller experiences sudden or continuous shocks from the impossibility of engines of ordinary description adapting themselves to surface inequalities. These shocks inflict damage on the rails and to the rolling stock; this is the main cause of the constant necessity for expensive renewals. Mr. Fairlie has produced engines now in operation on the Neath and Brecon Railway , which work without the possibility of such oscillations.

### March 28, 1868.

#### The Indian Trade. English Exports to India during last 15 years.

Exports

| 1853: | £7,324,147. |
|---|---|
| 1854 | £9,127,556. |
| 1855: | £9,949,154. |
| 1856: | £10,546,190. |
| 1857: | £11,666,714. |
| 1858: | £16,782,386. |
| 1859 | £19,844,920. |
| 1860 | £16,965,292. |
| 1861: | £16,411,756 |
| 1862: | £14,617,673 |
| 1863: | £20,002,241. |
| 1864 | £19,951,637. |
| 1865 | £18,260,413. |
| 1866 | £19,957,342. |
| 1867 | £21,844,619. |

Die Ausfuhr von 1867 die größte on record. Exports to Bombay and Scinde presented a slight declension 1867, to Madras a small advance, to Bengal and Pegu considerable increase. The construction of railways in British India involved supply of large quantities of plant, engines etc.

### April 4. 1868.

#### Crisis of 1866 und Nachwehn.

Never a period of dull suffering and depression so long and continuously felt. … Two main elements of distraction and depression of late: Windings up and railway insolvency. Enormous calls under windings up. Others sufferers by stoppage of their dividends. Dann uncertainty der victims as to their ultimate liabilities, preventing them from dealing with their remaining means. Crippling of resources and paralysis of action. Andrerseits now beginning to tell *the payment of creditors of Cos. in liquidation*, and the *settlements with debenture holders in Railway Cos*. These *transfers of capital* are coming largely in relief, and every day they will become more operative, as seen by course of Overend etc, Imperial Mercantile Credit etc. These transfers not absolute equivalents, but come greatly in mitigation. The fearful expenses in winding up, going in diminution of the property of creditors and debtors, constitute a transfer to attorneys, accountants etc to their profit.

#### Board of Trade Returns.

| A.) Imports. „Computed Real Value.“ |  |  |  |
|---|---|---|---|
|  | January |  |  |
|  | 1866 | 1867 | 1868 |
| Enumerated Articles | £10,394,443 | £10,063,066 | £9,477,083 |
| Deduct Raw Cotton | 3,341,901 | 1,076,616 | 688,424 |
|  | £7,052,542 | £8,986,450 | £8,788,659 |
| Deduct Wheat | 984,355 | 1,551,919 | 2,091,896 |
|  | £6,068,187 | £7,434,531 | £6,696,763. |
| B) Exports of British and Irish Produce und Mnfct. Declared Value |  |  |  |
|  | January and February |  |  |
| All articles | £29,470,811 | £27,232,914 | £26,593,667 |

Also Import und Export Abnahme in Trade.

#### Railway Wear and Tear. Cost of Production.

An enormous amount of useless and unprofitable force is expended upon every train on every railway, and this useless expenditure of force aggravates the loss to proprietors, by so wearing the rails as to make them require frequent renewals at very great expense. Take the case of the Metropolitan Railway . Mr. Fairly proved (sieh oben, March 21. ’68) that 30 tons of dead weight are carried on that line in proportion to 1 ton of paying weight. What business can be well carried on at a *working expenditure* (Kostpreis) of 30% in proportion to a paying expenditure of 1%? Opposition against improvement in this respect on part of engineers not belonging to the newest school in practical engineering.

* * *

### April 11. 1868.

#### Commercial Credit and Morality.

Liverpool Chamber of Commerce 1867 appointed a subcommittee to consider Sir John Rolt’s (late Attorney General) Bill on Bankruptcy law, and *„other laws bearing upon commercial morality“*. *On 6. April ’68* the Chamber met to discuss the report of the latter Committee.

#### Worn Coin.

£15,000 will again be proposed this session to cover the deficiency in the wear of silver coin withdrawn from circulation in the course of the year, the coin being received at the Mint at its nominal value. There will also vote of £500 to pay premium at 2% on old copper coin sent into the Mint, and the carriage of bronze money remitted in exchange.

#### Cotton.

Lately „spurt“ in the cotton market. *„Middling Uplands“* worth at the end of February 9⅛d. per lb, and at the end of March 11⅝d. *„Fair Pernambuco“* rose from 10d. to 11 4/8d., *Fair Ejyptian* from 8⅛d. to 10⅛d. *Fair Dhollera* von 8⅛d. to 10⅛d., *Fair Madras* von 7¾ to 9¾d. und *Fair Bengal* from 7⅛d. to 8¾d. The causes of this advance in market attributed to reduced cotton receipts at shipping ports of U. St. und increased demand at Manchester for manufacture. Nach dem circular von Ellison und Haywood the broad facts stand thus:

Home Consumption in Bales.

|  | 1868 | 1867. |
|---|---|---|
| In 12½ weeks – total | 765,280 | 468,820 |
| In 12½ weeks – average p. week | 61,222 | 36,063 |

The inference evidently, that a consumption of 61,000 bls every week cannot continue.

Computed Stocks in Bales. End of March

|  | 1868 | 1867 |
|---|---|---|
| In Liverpool and London | 461,341 | 689,608 |
|  | 370,723 | 523,926 |
|  | 832,064 | 1,213,534 |

Should rate of consumption continue at 61,000 bales a week, in hand a stock which would supply the demand for 14 weeks. If the consumption should relapse, sufficient stock for proportionately longer period.

Exports of Goods and Yarns. Two Months

|  | 1868 | 1867 | 1866 |
|---|---|---|---|
| Piece Goods. Yards | 483,219 | 411,880 | 373,004 |
| Piece Goods. Value | £7,754,000 | £8,504,000 | £9,273,000 |
| Yarn. Pounds. | 33,983,000 | 20,937,000 | 20,923,000 |
| Yarn. Value | £2,737,700 | £1,904,000 | £2,258,000 |

These figures show present quantity of manufactured cotton at maximum, while the value obtained from the foreigner for the largely increased product is much smaller than it was 2 years ago … The rapid decline in prices here, consequent upon an excessive supply, has produced diminution of arrivals. Manchester is buying more than she can sell at a fair profit, and Liverpool is cutting its own throat by raising the price against Manchester by rampant speculation.

#### The London Flour Co. (lim).

Resolution passed in October 1867, to wind up the Co. voluntarily, but certain shareholders, suspecting that the accounts had been tampered with, discovering that the above resolution was informal and invalid, filed petition to have the Co. wound up by the Court. Alleged that Directors had systematically paid dividends out of capital, recklessly carried on the business etc. Admitted by directors that they had put directors’ fees and managers’ salary to capital account and not to revenue, and also that the liquidators, professedly appointed under the resolution of October ’67, one of whom was the chairman of the board of directors and brother in law of the managing director, were proceeding to sell the property *without reserve*. Petition filed early in December 1867; pressure of business on the Court caused delay. Adroitly seizing this interval of grace, directors, before Court opens again after Christmas, issue a notice, this time proper, convene meeting on 8 Jan. ’68, in order to pass a resolution to wind up the Co. voluntarily; and their notice is accompanied by stamped proxy papers directed to the directors and with postage stamps duly annexed for their return. At this meeting directors obtain bare majority of ¾; but the petitioners stated on the hearing that proxies were improperly used on behalf of the directors, and thus the resolution was passed. By the time the petition came on for hearing, 15 Feb. ’68, the shareholders, having become alive to their interests, reverse their last decision of 8. Jan., and support the petition in such numbers that the directors then have but slight majority on their side. Vice Chancellor Stuart expressed himself strongly against directors, made order for winding up the Co. by the Court. Directors appeal. Independent shareholders show majority to oppose appeal. Lord Justices declare shareholders bound by the resolution passed at a meeting held after the petition had been presented, and which, from taking place almost in holiday time, was in the nature of a surprise upon the shareholders, who in fact alleged that several of them accidentally prevented from opposing the directors’ plan.

The more culpable directors, the greater the difficulty under which shareholders labour at meetings under directors’ influence. Generally impossible to obtain justice, attempt is a farce except in case of some colossal undertaking whose magnitude has invested it with such publicity that the shareholders can have matters somewhat their own way by the publicity of the proceedings. In the general run of Cos., shareholders who complain are cried down, improperly called to order, their resolutions put to the meeting in such way that the shareholders do not understand question before them, majority is often unfairly arrived at, and proxies rejected on most flimsy pretexts. After the decision of the Lord Justice in this case, it is open to the directors of the most mismanaged Co, when they find their game is up, to call a meeting, shuffle through resolutions to wind-up voluntarily, and appoint their own nominees as liquidators.

#### *The City Offices Co. (limited)*

Last half yearly meeting very badly reported. For the last 5 years ½ Mill. £. St. invested in property yielding no return and which, at present price of shares, stands at something like £100,000 only. Shares mit £25 paid. Directors, mit hohen Gehältern who, after 5 years’ trial, have entailed nothing but loss and disappointment on their shareholders, managed both to carry their report and get a vote of unabated confidence.

### 18 April 1868.

#### International Contract Co. (lim.) und Accidental Marine et Insurance Corporation. (lim.)

2 circulars recently issued by the Liquidators of these 2 bankrupt Cos.

The *Internat. Contract Co.* started mit nominal capital of 4 Mill. £. St., in 80,000 shares, small proportion paid up auf die 50£ share, so leaving enormous contingent liability. This practically unlimited liability of the shareholders seemed to afford ample security to credulous creditors; and, if all the shares had been applied for and allotted to *bona fide* shareholders, it might have been so. We see now the true value of this enormous nominal Capital and unlimited liability. Co. was only a few months in operation before it collapsed, and claims already sent in to the official liquidator nearly 2 Mill. £. St. Of these claims only a portion as yet adjudicated upon, result that upwards of £165,000 will rank as proofs, leaving a sum of upwards of £1,761,000 still to be litigated and proved. Director claims to a large amount by the Peruvian Railways Co., now in liquidation; the London Wharves and Wharehouse Co., now also in liquidation; und *claim of more than ½ Mill. £ St.* by *Edward Pickering* (who, it seems, likes to pick), the managing director of the Co! These latter claims, the liquidators state, arise upon „certain fictitious operations“ in connection with the Peruvian Railway Co. and others. Besides these claims the Co. Defendants in 5 Chancery suits, instituted by the Peruvian Railway Co. and others, under which there are certain alleged liabilities for indemnity and otherwise. The whole sum at present collected under the winding up accounts no more than £10,000. The list of contributories has been settled, and 229 persons, holding 38,663 shares, representing £1,540,000 capital, have been fixed as liable. But the liquidators say that, „having regard to the number of contributories who are but the *nominees of certain of the directors* or promoters of the Co., and to the fact that many of the remaining contributories are not in a position to meet their liabilities, they cannot hope that more than *£70,000 or £80,000 will* be raised by calling up the whole of the remaining capital.“ A list of persons liable as *past members* about to be filed, aber bevor dieß settled, liquidators consider it impossible to form any estimate of the amount realisable from calls upon this class of contributories.

In the case of the „Accidental Marine and Insurance Corporation“, the liability of *past members* the question embarrassing both liquidators and creditors. Creditors can only expect very moderate dividend, in addition to that already declared. Amount of unpaid capital upon the shares transferred during the 12 months prior to the commencement of the winding up is £80,250. Of this £16,340 is considered good, £24,090 doubtful, und £39,620 wholly bad. Liquidators therefore estimate value of the list of past members von £15 to 25,000£, whilst the claims actually admitted £197,077, and those still pending will amount to £50,000 more. Schwierigkeiten mit past members. Ihre liability confined (von jedem derselben) to the debts which had actually accrued at the time they ceased to be members. Ferner: At whose expense these proceedings necessary to establish the liability of past members to be conducted. Many of the creditors (deren Forderung von später datirt) no interest in enforcing the liability of past members. Endlich past members only liable to contribute to the extent of the amount remaining unpaid upon the shares they had held after proof that the present holders und any intermediate holders have been exhausted, and are absolutely unable to pay more. Daher cost of litigation würde alles auffressen. Die Liquidators bemerken: „There has not hitherto been a single instance of this past liability having been actually enforced, in the winding up of a Co. under the Act of 1862, and in most, if not in all the cases where an attempt to do so is now being made, there exists considerable difficulty in assessing and enforcing such liability, whilst it is certain that in this as in every other case the attempt to enforce it will involve the liquidation in very considerable expense and litigation.“

#### The Market Value of Finance Co. Shares.

|  | Market Prices |  |
|---|---|---|
|  | March 1866 | March 1868 |
| Credit Foncier of England | 2 prem. | 7 disc. |
| Discount Corporation | 11 disc. | 2¼ disc. |
| General Credit | ¼ prem. | 2½ disc. |
| International Financial | ½ disc. | 1¾ disc. |
| London Financial | 5½ disc. | 25 disct. |

*Credit Foncier of England*, hieß 2 years ago the Credit Foncier and Mobilier of England, paid at the outset fabulous dividends. Adverse Rumours then, shares fell continuously. In July, 1866, 20£ share reduced to £10, with £9 paid up instead of £5, £2 p. share being taken from the reserve fund, and £1 being paid up in cash. Subsequently £1 paid. Thus no further liability. The necessity of the last call explained at meeting of 25 Feb. 68 when shown that capital of Co. locked up in undermentioned investment:

| In Millwall Docks about | £150,000 |
|---|---|
| Irrigation Co. of France | 320,000 |
| Imper. Land Co of Marseilles | 270,000 |
| London, Chatham and Dover Railw. | 302,000 |
| Varna and Rustchuck Railw. | 196,500 |
| Paris Streets Impt. Co | 300,000 |
| City of Milan Improvements Co | 244,000 |
| Belgian Public Works Co | 107,000 |
| *Total* | £1,889,000 |

Shareholders have paid £8 p. share on 200,000 shares, zusammen £1,600,000, against invested in legitimate Joint Stock undertakings £1,889,000, aber diese investments not realisable at anything approaching the original cost, owing to the glut of shares and universal distrust in market. The 10£ share now fallen to 3£.

General Credit Co. advanced £160,000 to Lond. Chath. and Dover und diese sagen, sie sollen das Geld bei Peto suchen. Loan on Portuguese railway securities of £151,000 scheint fairly settled. Kapital der Co. £2,000,000, in 200,000 shares of £10 each, wovon £7. 10s. paid up. Market price only £5. The discount of £2. 10s. on 200,000 shares total depreciation of ½ Mill. £. St.

#### Australian Trade

Value of *British Exports January 1868* £736,950 gegen £557,062 in Jan. 1867 und £918,673 in 1866. Each of the 3 chief Australian colonies – South Australia, Victoria und New South Wales – has done with us more business of late. Exports to South Australia in Jan. ’68 £140,714 gegen £52,995 in Jan. 1867; those to *Victoria* £316,846 gegen £260,347 in 1867; und to Neu South Wales £176,427 gegen £67,847 in Jan. ’67. Dagegen we sent in Jan. 1868 less goods and produce to Western Australia, Queensland, Tasmania und New Zealand.

### April 25, 1868.

#### Falsification of Railway Accounts. Working Expenses.

There falsification under 2 heads, as *estimates of future liabilities* und *statements of actual results*. First evil meist in form of underrepresenting future capital outlay, z.B. Estimated cost of Midland approaches to London £2,216,000; kosten bereits £3,450,000 und werden noch viel mehr kosten.

*Falsification of actual Results:* selten by fictitiously *augmenting revenue receipts*, meist durch *suppression of working charges*. Z.B. sagt das Brighton Railway Investigation Committee of 1867, daß zu Revenue ought to have been charged:

| Maintenance of way, works, stations | £27,918 |
|---|---|
| Locomotive Power | 10,258 |
| Carriage and Waggon Department | 28,462 |
| Law and Parl. Charges | 44,682 |
| Printing, new shares etc | 5,250 |
| Commission allowed on issue of stock to contractors | 2,145 |
| Interest upon expenditure for works in progress in 1866 | 175,178 |
| Additional loss on Channel Island traffick | 1,665 |
| *Total* | £295,558 |

By these means the directors were enabled to pay in ordinary dividends £215,718. Daher non payment of a dividend 1867.

*Locomotive Power:* Includes all cost of fuel, wages of drivers, cleaners and others (sometimes repairs of engines und tenders, gehört eher zu maintenance of rolling stock) Convenient and vicious deductions may here be made for the conveyance of materials used in construction of new works, such being charged to capital at arbitrary rates.

*Maintenance of Way:* Hier gross systematic falsifications. To show fictitious profits, the permanent way allowed to lie for years almost uncared for. Endlich all or part of the sum required charged to capital. Or this expenditure may be charged as *„additional works“*. If a viaduct falls in, the cost of rebuilding may be charged to capital. Improved rails or sleepers, or repairing and enlarging stations, all such items open to colouring which policy may dictate. When works destroyed or removed to make room for others, original cost of the old works, or of their removal, should be sustained by revenue. Schwer zu bestimmen *cost of maintenance of way per mile*, as it depends entirely on soil, traffic, and nature of the works. Laing, 1849, estimated such repairs and renewals on Brighton line at £265 p. mile p. annum; experience has shown this to be minimum charge.

*Maintenance of Rolling Stock:* Often charged to capital in small or large proportions; while disabled vehicles stand in the Co’s yards, and only really exist in reports furnished to the shareholders. Thus, on *North British* last half year deficiency of 2,319 vehicles now written off the stock. Charge for these renewals and repairs should in most cases equal, if not exceed, 9% p.a. on first cost. Nach paper read by Fletcher at Institution of Civil Engineers, annual charge on *North Eastern* should be 12½% on *cost of locomotives*, 12% on cost of carriages, 6½% on cost of waggons. No certain rule for the mileage, however; speed and burdens carried must influence the result.

*„Salaries, office expenses, and directors fees“:* generally include not wages to engine drivers and others, falling under head of locomotive power etc Any proportion that is thought fit, transferred to an open capital account as expenses on works in progress; thus the Metropolitan directors have charged ½ of office expenses.

*„Canal, steamer, and sundry charges.“* (telegraph etc) May or may not include reserves for renewal and depreciation.

*„Rents, Debenture and Preference Interest“:* davon oft deducted interest on capital expended on works in progress. The more capital is returned as interest, the less will be employed on productive works. Sum thus distributed amongst proprietors, not profit, but return of capital. If capital may be dissolved in interest for one year, why not for 10?

„Loss or Gain on Issue of new shares and debentures“. Premium not to be placed to revenue, as losses are to capital.

#### Injuries consequent upon the vibration and Smoke of Trains.

Wenn Railways – (im Gegensatz zu Private Industry) als Use of Property sanctioned by Legislature in particular way – do damage to other Property durch vibration, smoke etc können sie, falls nicht case of negligence, nicht zu Schadenersatz angehalten werden. If every occupier of a house near a railway should have an action for the injury done to his nerves by the vibration and passing of the engines, railway fares would be raised to Public.

### May 2, 1868.

#### The Market Value of the Finance Co. Shares.

*International Financial Co:* stated that the Co possessed at close of 1867: £44,081 in cash, £19,813 in bills, £241,737 lent on securities, £717,227 in investments, *Total* £1,022,858. 150,000 shares of £10, worauf £5 paid. Present quotation £3 to £3. 5s. A large amount invested in *Metropolitan Sewage Co*, a concern, for the present, speculative, although it may become ultimately profitable.

*London Financial Association:* Statement issued by the Directors, Sept. 67, showed:

| *Dr.* Loans, investments, and current accounts |  | £1,379,791 |  |
|---|---|---|---|
| *Cr.* Securities held against money lent, viz: |  |  |  |
| Railway Debentures | £330,743 |  |  |
| Lloyd’s Bonds | 919,785 |  |  |
| Preference Shares | 730,580 |  |  |
| Ordinary Shares | 919,785 |  |  |
|  |  |  | £2,900,893 |

The Liabilities to public last July (’67) £280,000, reduced in following Sept. to £228,000. Capital of 40,000 shares of £50 each (£2,000,000), paid per share 30£, also £1,200,000. The market price p. share 22 discount, or only 8l. per share mit £30 paid. So der 40,000 shares Marktpreis £280,000 instead of the £1,200,000 paid by the shareholders. Of course, die Railway investments not worth anything like par, aber durch depreciation der shares [the difference] too great. Large portion of the securities held consist of bonds and shares of Welsh Railway. Seven railways in which the association held an interest had been opened for traffic in 12 months. Daher:

Summary of the Position of the financial Cos:

|  | Prices of Finance Shares. |  |  |
|---|---|---|---|
|  | April 1865. | April 1867. | Present Price. April 1868. |
| Credit Foncier of England. | £6 pm. ⦗on 100,000 shares. £5 paid.⦘ | £7 disc. ⦗on 200,000 shares. £9 paid⦘ | £7 disc. ⦗on 200,000 shares. £10 paid.⦘ |
| General Credit. | £2. 10s. pr. ⦗250,000 shares. £4 paid⦘ | £3 disc. ⦗200,000 shares. 7l. 10s. pd.⦘ | £2. 10s. dis. ⦗200,000 shares. £7. 10s. paid.⦘ |
| Internat. Financial | £1. 10s. pr. ⦗150,000 shares. £5 paid.⦘ | £2. 15s. dis. ⦗150,000 shares. £5 pd.⦘ | £2. 15s. dis. ⦗150,000 shares. £5 paid⦘ |
| London Financial. | £7. 15s. pr. ⦗40,090 shares. £15 paid⦘ | £23 disc. ⦗40,000 shares. £25 paid⦘ | £22 disc. ⦗40,000 shares. £30 paid⦘ |
|  | Values of the Properties at the respective Periods: |  |  |
| Credit Foncier of England | £1,100,000 | £400,000 | £600,000 |
| General Credit | 1,625,000 | 900,000 | 1,000,000 |
| Intern. Financial | 975,000 | 337,500 | 437,500 |
| London Financial. | 910,000 | 80,000 | 80,000 |
| *Total* | £4,610,000 | £1,717,500 | £2,117,500. |

* * *

### May 9, 1868.

#### The Cotton Statistics Bill. Read 2nd time on H.o.C. 6 May ’68.

Mr. Bazley, on moving second reading der Bill, said its object was to ascertain correct information in reference to all the cotton which arrived in the U. Kingd., and practical effect would be to *prevent undue speculation* in this important staple.

#### Un. States Debt. Washington May 6.

Monthly statement of McCulloch. On 1st May ’68 Debt = $2,639,500,000 against $2,642,000,000 on 1st April 1867, being decrease of $2,500,000.

* * *

### May 16. 1868.

#### The European Bank. Maladministration of Joint Stock Cos.

*Highest degree of incapacity, culpability, and commercial immorality.* This Co. compounded of the *English, Belgian, and Netherlands Bank, the Union Bank o. England and France*, and several other new banks with which it amalgamated. Commenced business in 1864, stopped payment on 19. May 1866, is now in course of liquidation, the liquidators being *Sir Robert Walter Carden* , who was *one of the directors* of the concern, and Mr. *George Brown* and Mr. *Frederick Whinney*. At meeting of *9 Nov.* ’67 shareholders nominated investigation Committee. Now before us Report of the Liquidators, issued on 9 April ’68, und Report of the Committee of shareholders, issued on 22. April ’68. Liquidators’ statement shows *estimated loss of capital* of about £600,000 (exclusive of interest and costs of liquidation) or  6/7 of the whole capital, within the short period of 2½ years. Shareholders committee found great difficulty in their inquiry. Amongst these difficulty „the very irregular mode of bookkeeping, the extraordinary multiplicity of books, absence of some books of the head office, and of all the branch books, and the alleged non-existence of other books indispensable to a proper recording of the transactions of a great establishment.“ Die directors thun alles to make them not find the clue to their malversations: „The various amalgamations to which this bank has been a party are still involved in a cloud of mystery discreditable to those connected with the details.“ The paid up capital set forth in the various balance sheets, and vouched by the auditors, was, in fact, never so paid up. Of the £80,000 to be contributed by the Birmingham and South Staffordshire Bk., a very small proportion was ever received, and other serious deficiencies exist. The circumstances attending the transfer of a large number of shares, transactions in which the funds of the bank have been misapplied and dissipated, open to grave reprehension. The last call remains unpaid on shares now standing in the names of nominees of the bank and of directors and officers of the bank as so called „trustees“. Some of the directors have hitherto failed to pay the last call even on the shares which qualified them for seats at the board. Debts are still owing to the bank for advances made to Cos. in which the directors were personally interested, „made in the most reckless manner, and upon next to nominal securities“. The committee advert to the „fatal and enormous advances made to the different French Cos. … apparent follies (real Gaunerei) of these operations“. As to the conduct of the directors, and their personal liability in subscribing for the shares of other Cos., no difference of opinion possible. Irrespective of the serious loss sustained by these shares at the date of the suspension, *a very large sum has been actually diverted from the purpose of the liquidation* to meet liabilities attaching to these transactions. Committee glaubt die directors können personally been made liable for the losses. Sir *R. W. Carden* , sagt *Money Market Review* , ought not to be one of the liquidators. Er war grade Hauptschwindler als director.

#### Bank of Bombay. (Govt. Schwindler.)

Schwindel und Betrug, obgleich Government trustee der Bank und 3 of its members were nominees or directors. Die Public placed 2 Mill. £. St. in the Bank. Die Schwindelei bewiesen durch des Gvt eignes Blue Book. Erklärte aber (The English Secretary for India in Council) that no grant could be made from the public revenue in India for the purpose of making good the losses. Darauf verlangte das India office (nachdem sie durch ihr Blue Book die Schweinerei selbst bewiesen) die shareholders to prove those same charges before a commission just sent to Bombay to inquire into the affair. The Gvt. pleaded guilty, and then demanded a trial.

* * *

### 23. May 1868.

#### Personal Liabilities of Directors in Jt. Stock Cos.

*Herefordshire Bank Co. (illimited)* failed June 1863 mit deficiency of about £36,000. Nur 24 shareholders. Einer alone had to pay ½ des deficits. Nun suit von Turquand, dem official liquidator der Bank, gegen surviving directors und die representatives of some deceased ones for the losses incurred. His charges against the directors: 1) that they had continued to carry on the business of the Co. for several years after the surplus fund and ¼ of the capital had been lost, gegen die 108th Clause des Deed of settlement; 2) that they had paid dividends out of capital von 1846 till 1863; 3) that they had allowed other debts to stand over unpaid, published false reports und balancesheets; improperly sanctioned loans to one of themselves. On 18 April entschied Lord Romilly, master of the rolls, für den Kläger.

#### French National Debt.

Now £485,300,000; of which £437,700,000 consists of Rentes, £36,000,000 floating debt, £11,600,000 of caution moneys reimbursable. After the introduction of the proposed loan of £17,600,000 the total debt will stand at £503,900,000.

* * *

### May 30, 1868.

#### The half yearly Reports of the Madras and East India Irrigation Cos.

Until the assumption of the Gvt. of India by the Crown there was no fixed policy for the general extension of irrigation works. Though the Crown succeeded the Co. in 1858, it was not until 1861, that the famine in the North Western Provinces revealed the necessity of irrigation. Five years afterwards the more deplorable famine of 1866. Erst 1867 und 1868 absolute sanction given by Gvt. to all needful extensions of the practice. For the delay in the irrigation of Madras and Orissa, these Cos. not responsible. The character of the works they are constructing make full amends in durability and efficiency. … The Gvt. has decreed the systematic irrigation of India because it is the best security for the public revenue; and these Cos., in the territories which they cover, are providing an indefinite number of canals from several rivers which will provide every acre of every estate, at the hottest seasons, with ample supplies of the fertilising element. … The two great instruments to prevent famines are irrigation and roads, inasmuch as they constitute the means of producing and distributing food. As to roads, the old East India Co. replied, that owing to a want of stone the means of making good roads did not exist. *(in Bengal)* The same thing was said of other provinces. Violent disputes always occurred when the wretched vehicles of the country proceeding in opposite directions met in nullahs – torrents during the monsoons, but narrow gorges in dry seasons – from the impossibility of their passing each other. These natural tracks are gradually being superseded now; and Bengal presents at this time a very different aspect in this particular to what it did 30 years ago. By means of its internal communications, some of which are tidal channels constructed by one of these Cos, stone is being brought into it.

* * *

### June 13, 1868.

#### The East India Irrigation and Canal Co.

The actual results achieved by the East India Irrigation Co. in the Godavery District: Those works will distribute the enormous quantity of 1,500,000 cubic yards of water per hour, on an average, for half the year, and about 600,000 cubic yards per hour, on an average, during the other half, or about 9000 million cubic yards in all. These works have been constructed at a total cost of about 1 Mill. £. St., and allowing 9% for interest, management, and repairs, or £90,000 p.a., the cost of 100 000 cubic yards of water will be £1 only, whilst the actual cost hitherto paid by the cultivators is one rupee for 300 cubic yards, or £30 for 100,000 cubic yards, being 30 × the price at which the Co. can supply it. Encouraged by their success in this district, and the famine of Orissa, the Co. have now undertaken extensive works in Orissa, and also in the district of Behar. Great Progress already made in the Orissa undertaking – in fact, the head or main works have been completed, and water is being actually supplied over a considerable extent of country. But further capital is required for the extension of these works, and the Gvt. of East India have agreed with the Company to pay for all water supplied by the Co. for the purpose of irrigation, the shareholders being thus secured against loss from the nonpayment of the water-rates in that district. The „Behar Undertaking“ has been strongly recommended by the Indian Gvt. By way of encouragement and guarantee, they have in this case also agreed to pay for all water supplied for the purpose of irrigation, upon condition that the Gvt. shall participate in a certain portion of the profits to be realised by the Co. after payment of 20% to the shareholders. Profits anticipated are calculated to realise 40 or 50% for the shareholders!

#### Cotton Statistics Bills.

In H.o.L. Lord Salisbury moved 3d reading of the measure. Brachte auch Petitions ein which complained of the injury done to the cotton manufacture by the speculation persistently carried on in the raw material; that manufacture representing 40 Mill. £. St. of capital and the labour of 1 Mill. Persons. Bill read 3d time and passed.

* * *

### June 20. 1868.

#### Frauds and Forgeries on the Leeds Banking Co. – Conviction of Edgeley.

Bank stopped autumn 1864. Sogleich wurde notorious that Greenland (the manager) perpetrated frauds und forgeries, in conjunction with several other parties, behind back der directors. Marsden, one of the real culprits, escaped to America ⦗his halfwitted clerk (a youth) sentenced, on Greenlands evidence, to 15 years penal servitude.⦘ Greenland etc schließlich pardoned. (Hardy refused to pardon Skaife, the poor boy, kurz nachher pardonirte er Greenland). Skaife still convicted felon. Greenland, for whose benefit he had signed the forged bills, and whose sanction he considered made the thing right, forthwith wended his way to the Mediterranean. Is there still living upon the fruits of his crimes. Edgeley, a socalled merchant of London (City), was one of the parties by whose forgeries and the connivance of Greenland the Leeds Bank defrauded to extent of about £108,000. Prosecution instituted by the official liquidator, 12 months since. Only last week Edgeley tried. On the pretext of Greenland’s absence (who refused returning) etc Edgeley succeeded to postpone the trial session after session. Endlich tried, Jury found him guilty, sentenced by judge to one year and 9 months’ imprisonment.

* * *

### June 27. 1868.

#### Railways 1845–46.

First application to Parliament for a bill to construct a railway 1801, for a line between Wandsworth and Croydon. Von 1801–1825 Acts were obtained for 28 more railways. After 1825 the movement quicker. 1845 there were in existence Acts of Parliament for 412 railways, to be constructed at a cost, in round numbers, of £155,000,000. Average of railways up to 1845, not financially prosperous, but then a mania. George Hudson appeared upon the scene, indoctrinated the community mit belief that railways were mines of gold. He became chairman of the Midland Railway, of the York and North and Midland, of the York, Newcastle, and Berwick, of the Eastern Countries, and others. In that capacity he thought fit to lease at 6% the Birmingham and Bristol, which had never before earned 2% p.a.; and by this lease the value of the share was raised from some 60 or 70£ p. share to 150£. Upon the announcement of this lease, the shares in the railway concerned rose *in one day* nearly £50 in market value. Then followed other railway leases. The „Great North of England“ was taken over at 10% p.a., with a corresponding increase in market value, and then the Leeds and Bradford, and the Hull and Selby, likewise at 10%. Next, the Eastern Counties, which had struggled on for years with scarcely a dividend at all, suddenly paid 7% p.a. under Hudson’s magic sway, and the price of the shares rose 3 or 4 ×. But perhaps the most remarkable instance of the effects of his regime was the establishment of a premium of about 28£ p. share upon the Newcastle and Berwick before a sod was turned, and though there was only £2 p. share paid up. These facts were quite enough to send the world mad. It was schön to obtain a profit of £28 in one week by paying £2, and here was the foundation of the railway mania of 1845. Adopting Hudson’s plan of action, other railway Cos. followed in his wake, and there stands on record a great battle between the London and Northwestern and the Great Western for possession of the unmade railway from Oxford to Birmingham, the one offering 175% premium for the shares, and the other 50 P.Ct. Then came a host of other leases at fixed rates of guarantee – the Trent Valley; the Lancaster and Carlisle; the Preston and Wyre; the Bolton and Bury; and numerous others. The railway world lost its senses. It was only to buy and to double, treble or quadruple the purchase money. But then supervened a still more questionable class of adventure. Baseless projects were set on foot in all directions. Such a scheme as the „Manchester and Southhampton“, before even the Bill was lodged, and for which an act of Parliament was never obtained, was at £4 to £6 premium; while the South Devon, the „Direct Exeter“, the South Wales, and a host of others, some of which had never any real existence, commanded any premium that mad speculation could conjure up. The „South Midland“ – a project for a line from Hitchin to Leicester – stood at 12£ premium, the Banburry and Cheltenham at 7 or 8£ Prem., and even the Cornwall at £6 or £7 premium. Great Western shares, with £80 paid, at one period approached the enormous price of £235. London and North Western were at nearly £250; and difficult to say what railway share in the market was not at some ideal premium, on the same scale, and the same false computation of profit. Then came the reaction. Found that the profits upon which Hudson had based his 10% leases and similar arrangements, were wholly imaginary. He paid dividends out of capital, and, to use the words of an official before the Eastern Counties Railway Investigation Committee, he achieved his purpose by the rule that, „capital was to bear what revenue would not“. Easy to pay dividends on such terms, until public saw that the whole a farce, then down came the entire fabric, involving in utter ruin 1000ds of families.

#### The Extraordinary Subsidies of the French Gvt. to the Messageries Impériales.

This Co. undertook its mail contract with India and China via Egypt *in 1861*, with all the advantages derivable from the 17 years of costly trial and experience gained by the (Brit.) Peninsular and Oriental Co. French Gvt. conceded to that Co. subsidies, to be payable out of French taxes *for 24 years*, without competition, equal in amount to 3 × the amount of subsidies payable to the English Co., with competition, at intervals of 6 or 8 years. Auch sonst enormous advantages und guarantees conferred upon the French Co. without parallel in the contracts of the British Gvt. with the Peninsular and Oriental. Now another contract with the favoured Messageries submitted to the Corps Législ. Hitherto the mail service of France in the South Pacific performed by the British mail steamers, without cost of 1 single d. to French Gvt. or people. Messageries are ambitious to conduct it; with subsidy of no less than 3 times the mileage rate now paid by the British Gvt. for the same service. In addition to this, the Messageries are to have a loan from the Gvt. of £160,000, and their shareholders the guarantee of the Imp. Gvt. of 5% dividend upon their capital … Gratuitous squandering of Public Funds upon speculative monopolists unable to sustain themselves in fair competition.

#### The West Wisconsin Railway. (Land und Eisenbahn in U. St.)

Wisconsin in part covered mit immense forests of most valueable timber; possesses a rich vegetable soil, averaging a depth of 2 feet; most prolific in minerals; the great level region of the Mississippi lies chiefly within its limits. Is already 2nd wheat producing State in Union. Population at last census was 800,000. Its area 54,000 □ miles, little less than that of England and Wales. Is deficient in railway communications. British capitalists invited to promote that object. Some proposed the West Wisconsin line, to be 157 miles in its total length, running in a north-westerly direction, from Tomah, on the south east, where it connects with the lines from Milwaukee and Chicago to Hudson, on Lake St. Croix, whence it will soon connect with St. Paul’s, the capital of Minnesota, where the great railways of the West concentrate. It passes through a fine farming country in a high state of cultivation, as well as through forests of pine, walnut, maple, and oak; and along the whole route are not only farms but numerous steam saw mills and flour mills, furnishing the means of a constantly growing freight traffic. The *Congress of the U. St.*, as an aid to the construction of the line, made some years ago a grant to the Co. of 1 □ mile of land for every mile in length of road constructed – that is to say, of 1,004,800 acres. The value of these lands, at the present legal minimum price is 4,512,000$ or £900,000. … The value of land is reckoned von 2½ $ to 5$ p. acre. At the present moment the lands of the Illinois Central Co. have improved to average of nearly 11$ per acre; and the West Wisconsin lands as rich, if not richer, naturally.

### July 11. 1868.

#### Alderman Dakin.

This worthy is a director of the City Offices Co; Metropolitan Railway Co; South African Mortgage and Investment Co; London and Lancashire Insurance Co; chairman of the English and Scottish Marine Insurance Co; director of the Rhymney Railway Co.; chairman of the Grt. Western of Canada Railway; director of the Great Central Gas Consumers Co.; Metropolitan District Railway Co; Metropolitan Railway Warehousing Co; Cape (Eastern Province) Railway Co und was director in several Cos. now being wound up.

#### H. E. Bird, public Accountant, Estimate of Railway (nach den official accounts der Directors (!))

| Diese estimates für die 18 largest British Railway Cos. |  |
|---|---|
| Capital expended, 1866 and 1867 by the 18 Railways | £31,248,287 |
| Gross Revenue earned by the same in 1866 and 1867 | 68,525,458 |
| Working expenses charged against Revenue dt. dt. | 33,528,073 |
| Net Revenue | 34,997,385 |
| Surplus of Net Revenue over Capital expended | £3,749,098 |
| Paid away in Dividends and interest (dtto ’66 and ’67) | £35,694,873 |

#### Labor of Superintendence. Venezuelan Loan. („Venezuela: Its Government and its People, and the History of the Loan of 1864. By E. B. Eastwick, C. B. F.R.S., late Secretary of legation at the Court of Persia; and Commissioner for the Venezuelan Loan for 1864.“ (London. 1868.))

Dieser Kerl von der City geschickt zum Contrahiren des loans. Vgl. auch Isidor Berlinerblau Gerstenberg.

Dieser Eastwick sagt Achsen zuckend von den Creolen von Südamerika: „Though they have many good qualities, they are averse to physical labour … Their wits are sharp, and they do well for superintendents; but as to work, that tries the sinews … All the haciendas in the country would go to ruin if it were not for the Indians and the mixed breeds.“ The Creols are good for nothing, sagt die *Money Market Review* »but as superintendents«. Hauptwitz des Eastwick wie des Berlinerblau daß die Englische Regierung gegen Venezuela (die Regierung dort hatte den englischen Kapitalisten gewisse Zölle verpachtet) interveniren soll. He reproduces despatch of Palmerston d.d. 1848, worin der emphatically asserts the rights of the British Gvt. to intervene in such cases. (gegen defaulting Gvts.) Und die *Money Market Review* sagt:

So long as the „profitable“ undertakings *at home* are the most profitable, and sufficient to absorb all capital seeking investment, that capital will no doubt be invested in them; but money, like every other commodity, will always seek the *best* market, and if foreign states are willing to pay higher rates of interest than can be obtained from home investments, it is natural that English capitalists should invest in foreign loans. And if a foreign state, as a state, contracts to pay a British subject, the latter has an undoubted right to the assistance of *his* Gvt., in enforcing the performance of that contract.

#### Income Tax. Ireland.

Amount of property and profits charged in Ireland: £21,231,567 in 1854, £23,399,021 in 1864, £25,273,390 in 1866.

#### Australian Gold. Imports in U. Kingd. for 10 J. end. 1867 (inclusive).

| 1858. | 1859 | 1860 | 1861 | 1862 | 1863 | 1864 | 1865 | 1866 | 1867 |
|---|---|---|---|---|---|---|---|---|---|
| £.9,064,763 | £.8,624,566 | £6,719,000 | £6,331,225. | £6,704,753 | £5,995,368 | £2,656,971 | £5,051,170 | £6,839,674 | £5,801,207. |

When considered that the New Zealand gold fields have brought in contingent of gold during last 2 or 3 years, seen that gold yield in Australia proper has somewhat fallen off.

### July 18. 1868.

#### „Commercial Morality. By a retired Merchant. London 1868. 2nd edit.“ (Ranken et Co. Drury House, St. Martin’s Le Grand:

Dwells upon the wrongs which the butchers, grovers etc are now suffering at the hands of the cooperative stores, „by which they have been reduced to circumstances of temptation“. „So far from running amuck at the shopkeepers, they are deserving of our sympathy, for many worthy people must be thrown out of employment by the *centralising character* of the co-operative system.“

* * *

### July 25. 1868.

#### Banking Progress during half year ending 30. June. Reports of the London Joint Stock Banks.

|  | Deposits: |  |  |  |  |
|---|---|---|---|---|---|
|  | June 30. 1868. | Dec. 31. 1867. |  |  |  |
| London and Westminster | £19,915,950 | 22,010,572 |  | Decr. £2,094,622 | Total net decrease of deposits £3,747,194 = 9% on amount held last Dec. |
| Union | 10,069,837 | 12,071,097 | Decr. 2,001,260 |  |  |
| City | 2,514,782 | 2,229,791 | Incr. 284,991 |  |  |
| Alliance | 1,296,286 | 1,322,218 | Decr. 25,932 |  |  |
| Imperial | 1,159,412 | 1,177,967 | Decr. 18,555 |  |  |
| Consolidated | 2,260,770 | 2,184,783 | Incr. 75,987 |  |  |
| Metropolitan | 297,237 | 265,040 | Incr. 32,197 |  |  |

|  | Acceptances. |  |  |  |  |  |
|---|---|---|---|---|---|---|
|  | June 30. ’68 | Dec. 31. ’67 |  |  |  |  |
| London und Westminster | £970,096 | 902,700 |  |  | Incr. £67,396 | Zunahm[e] Total in acceptances of £2,252,674 |
| Union | 7,308,655 | 5,298,744 | Incr. £2,009,911 |  |  |  |
| City | 2,161,690 | 1,418,388 | Incr. 743,302 |  |  |  |
| Alliance | 217,593 | 98,541 | Incr. 119,052 |  |  |  |
| Imperial | 93,004 | 134,726 | Decr. 41,722 |  |  |  |
| Consolidated | 200,531 | 102,414 | Incr. 98,117 |  |  |  |
| Metropolitan | 4,596 | 4,676 | Decr. 80 |  |  |  |

*London Joint Stock* had still its old form of account of lumping acceptances mit deposits. Total of these items £13,836,628, being £1,859,296 more than last half year.

|  | Amount of net Profits. |  |  |
|---|---|---|---|
|  | June 30 ’68. | Dec. 31. ’67 |  |
| London and Westminster | £152,396 | £147,646 | Incr. £4,750 |
| London Joint Stock | 74,908 | 66,994 | 7,914 |
| Union | 99,570 | 89,711 | 9,859 |
| City | 17,673 | 19,877 | [Decr.] 2,204 |
| Alliance | 16,417 | 5,734 | 10,683 |
| Imperial | 10,824 | 10,670 | 154 |
| Consolidated | 31,313 | 27,263 |  |
| Metropolitan | 5,932 |  |  |

*London and Westminster* divides 24% p.a. against 32 und 28% p.a. respectively in the 2 preceding half years.

| London Joint Stock | 12½% (on larger capital) against | 12½ und | 16⅔ |
|---|---|---|---|
| Union Bank | 15 | 15 | 25 |
| City Bank | 7 | 7 | 10. |

*Imperial, Consolidated und Metropolitan* continue to pay 5% p.a. as in January last, *Alliance Bank* 3% p.a. for last half year, no dividend January last.

#### Intrinsic Value of Railway Property. (Concluded.) (Sieh p. 38)

| *Capital* apparently raised or expended at close of 1867 by said 18 Railways in round numbers: | £361,387,016. (Dieß weniger als wirklich) |
|---|---|
| Gross Revenue of Year 1867 | £34,749,460 |
| 9.63% upon the capital spent at the end of the year. (*Gross Revenue* upon the capital spent at the end of the year.) |  |
| Working Cost (1867) | 17,138,120 |
| Apparent net profit | £17,611,331 |
| This yield nominally an average of 4.88%. Aber nun deduct *charges made during year to capital* |  |
| Deduct charges to capital | 12,198,967 |
| Net Profit with closed capital accounts | £5,412,364 |
| These net profits upon capital of £361,387,016 would yield in year exactly | 1½%. |

#### A bad Business. – Smith, Knight, and Co. (Lim.)

*John Smith*, of that firm, contractors applied to Bankruptcy Court on 9. July for discharge. Nach den accounts (before dem Court) liabilities £493,384, assets only about £4,407, besides a „doubtful“ claim of £118,000 on the Penarth Harbour Dock and Railway Co. On 1st April 1864, the business of Smith and Knight transferred to limited Co. in consideration of £234,000. Their liabilities at that time £218,076 mit assets stated to be £119,000, in addition to the doubtful claim above mentioned. When the Co. was formed each of the partners took 10,000 shares of £50 each. Diese Kerls sold their really insolvent concern at goodwill of £234,000. Found directors to father such a project.

Dieser Smith commenced business in 1855 mit £4,400. He senior partner. Of Knight nothing is said, has besides, absconded, war probably penniless. Each of these partners (1864 when the lim. Society started) engaged to take 10,000 shares, i.o. to pay £1,000,000 (when they were insolvent). Vor dem Bankruptcy Court Smith (nachdem Knight absconded) discharged, since the directors of Smith, Knight et Co – the representatives of the shareholders – intimate that they are perfectly satisfied mit Smith’s accounts, and have no objection of his passing and being discharged of all legal obligation.

* * *

### August 1. 1868.

#### Board of Trade Returns

Show depression of Trade.

Exports, value, in June ’68 nearly 14 Mill. £., being £737,000 less than in May ’68, £1,557,000 less than June 1867 und £697,000 less than June 1866. Exports, value, first 6 months ending June ’68: £84,601,000 being £3,012,000 und £8,256,000 below those of corresponding periods of 1867 und 1866 respectively.

These Reductions chiefly to be attributed to changes in exports of textile fabrics, cotton manufactures showing the greatest falling off. Diminution in all chief articles (vgl. mit 1867 only) excepting cotton yarn, coals and copper.

*Imports. „Computed Real value“* of enumerated articles for *May ’68:* 21¾ Mill. £, 2½ Mill. less than *May ’67* und 3 Mill. less than *May ’66*.

Aggregate Imports, ditto, for 5 months end. *31 May 1868* £90,168,000, *merely* £1,620,000 than same period 1867, aber £8,148,000 less than same time in 1866. Chief alterations, compared with same time 1867, *Increase in Wheat* imported from U. States, Egypt, Turkey etc and *Decrease in imports of wool* from Australia, and silk from India, China, and other places. Reduction of about 1½% in value of cotton imported, aber slight *increase* in *quantities* for the 6 months ending June last.

#### Panic and Investors.

After a panic, such as that of May 1866, comes prostration, when investors scarcely care to buy anything at any price; then a hesitating confidence; then full confidence; and at last gambling and another panic. This has been the ordinary routine, and in all probability it will continue.

#### The Indian Trade.

*Export from U. Kingd.* nach India. amounted *on April 30, ’68* to £7,008,951 as compared mit £5,762,596 in corresponding period of 1867, and £5,129,811 in that of 1866. The shipments to Madras have shown some depression this year, but Bombay and Scinde took British goods in first 4 months of this year to £1,817,511, as gegen £1,415,253 in period of 1867 und £1,433,181 in that of 1866. Similarly the value of the British goods taken by Bengal and Pegu in first 4 months of 1868 was £4,706,837, against £3,852,318 in 1867 und £3,102,947 in 1866 (corresponding periods).

* * *

### August 8. 1868.

#### Final payment of Creditors of the late Agra and Masterman’s Bank. (Stopped 7 June ’66, every creditor paid 15. July, ’68.)

At the time of stoppage liabilities £7,700,000, and assets spread almost over the whole world (England, India, China, Australia). Creditors paid in full mit interest of 5%. When it stopped liab. £7,700,000 und assets £10,000,000. The resuscitated undertaking has just declared interim dividend to 30. June at 8% p.a. on the A Capital (the shareholders Capital. The B Capital is that represented by the reserved shares of the „Agra and Masterman’s“ proprietary.)

#### Cotton Statistics Act. 1868.

*Return of actual stock of cotton on hand in various parts in U. Kingd. on 31. July. 68* 278,450 bales of American, 129,872 of Brazilian, 132,923 East Indian, 41,318 bales Egyptian, 27,226 bales miscellaneous; total number of bales 609,789. This return made from figures voluntarily given, and which the Board of Trade had, consequently, no means of checking.

#### Commercial Prospects of U. States. (Financial Circular of H. Clews et Co. New York.)

Owing to deficiency of home production, we have, for last 5 years, imported Foreign products largely in excess of ordinary means of payment, viz. produce and precious metals. Resulting deficiency set off by remittance of U. St. securities to extent of $700,000,000, or, say, ⅓ of our whole gold interest debt. Dieß purchase of our bonds comes now to end. Aber we are not proportionally reducing our Imports. This verspricht crisis from overtrade.

#### Pacific Railway etc.

Officially announced that the Great Railway Route to the Pacific will be opened for through traffic from New York to San Francisco on 4 July. 1869.

### 15 August. 1868.

#### The Exports of Gold and Operation of Bank Act.

*Decrease* in coin and bullion £571,260. *Decrease in reserve of notes and coin:* £141,140. *Coin and Bullion in B.o.E.* £20,800,729. *Reserve:* £11,267,469.

During last few weeks there has arisen a moderate but continuous demand for gold for exportation, followed by an increased but still inconsiderable demand for it on account of the new French loan, and the customary demand at this season for our harvest operations. The demand for harvest purposes have been earlier than usual, heavier than usual, and more universal and less gradual than usual, because such has been the nature and character of the harvest itself. But all these demands put together small compared with total amount of bullion in hand. Yet effect on Money market considerable. Consols depressed to nearly 1%, other home securities in proportion, while many foreign securities have fallen 2 or 3%. Why all this? Rational cause there is none. But for years public mind accustomed to associate drain of gold, whether external or internal, with a rise in value of money, and a fall in the prices of all ordinary investments. Stupid investors, whenever what is called a drain of gold occurs, it is to them, a sign of ill omen. They rush to sell in anticipation of the fall, and thus actually produce it, as in this case. Dieser Blödsinn legitimate offspring of the Bank Act of 1844, and the policy of the Bank directors under its provisions.

#### The New Act on amending the Law relating to Railways.

Der Akt enthält nicht Compulsory official Audit.

#### Indian Railways in their most recent Financial Aspect.

*Mr. Juland Danvers* has lately issued his annual report. During *year ended 31. March 1868*, 349 miles of new railway opened for traffic, including the Jubbulpore branch of the East Indian, consisting of 225 miles; 29 miles of the Grt. Indian Peninsula to Nagpore; 27 miles of the Delhi line between Ghazeeabad and Meerut; another section of the Delhi line of about the same length between the western terminus of Umritsur and the river Beas; and the remaining 41 miles of the Great Southern to Errode, where it forms a junction with the Madras Railway. Drawback: the works on the Great Peninsula are proved to be defective, especially on the Bhore Ghât incline. The *„through“ communication between Bombay and Calcutta*, which would have been completed this year but for this mishap, now postponed. Engineers’ estimates have been exceeded in every instance, while the contract has not in all cases been observed.

The principle of the *guarantee system* by the Gvt. must not be abandoned.

| Capital required according to the last Estimate, | 31 March 1868 | £93,916,000 |
|---|---|---|
| Authorised by Gvt. to be raised | do. do. | 84,386,000 |
| Total raised | do do | 76,579,016 |
| Withdrawn for expenditure | do. do. | 75,071,656 |
| The amount of capital raised during year ended | 31 March 1868 | £9,102,540 |
| Expenditure during same year |  | 7,024,960 |
| Estimated Expenditure during year ending | 31 March 1869 | £6,077,000 |
| Stands on balance to the Credit of the various Cos |  | 1,682,000 |
| Leaves, according to Estimate, to be raised during | 1868–69 | 5,574,000 |
| Revenue Receipts in gross for year ended | June 30, 1867 | £4,875,112 |
| Revenue expenses |  | 2,537,812 |
| Net Profit |  | 2,337,300 |

The Revenue for the Indian Railway System during year ended *30 Jun. 1867* nur £32,337 in excess of previous year, but year ended *30 June 1866* there was increase of £962,984 over that ended 30 June 1865, and thus in 2 years the addition to the revenue upwards of a mill. £.

|  | For the years ended |  |
|---|---|---|
|  | June 30. 1866 | June 30. 1867. |
| Net Revenue | £2,304,534 | 2,336,871 |
| Guaranteed interest | 2,936,672 | 3,179,095 |
| Advanced by the State | 632,138 | 842,224 |

If there was trifling increase in the net revenue of 1866–67 over that of 1865–66, the expenditure of capital advanced much more rapidly, and consequently the payment of interest by the State become far more onerous upon the state than in the previous year. The Revenue of 1865–66 exceptionally increased by the traffic in cotton from the interior to the coast under the stimulus of the high prices in U. Kingd. and the attendant mania in India. This stimulus removed, the traffic of the railways relapsed into its normal condition. The wonder is that the traffic was so well supported in the latter year.

* * *

### 22. August. 1868.

#### The General Estates Co. (lim.)

Nach Report von Fagg and James, the official liquidators, the Co. formed in June, 1865. Projector: James Clifford Hodges. Objects proposed: acquisition of leasehold and real property in City and elsewhere for the purpose of making a profit by them, but not clear in what way the profit was to be made. The immediate and real object of its formation was the purchase and taking over of several heavily mortgaged properties belonging to Hodges and which Hodges did not know how to dispose of advantageously. Shares, allotted in July; only 5,925 taken up; total amount, therefore, of paidup capital with which the Co. commenced operations, only £11,850; but that was of no consequence. If they had not paid up capital they had unpaid capital, for which the shareholders would be liable, and they had besides the credit of a corporate company which they could utilise by the creation and issue of debentures and bills. No sooner was the Co. constituted than the directors contracted with Hodges for the purchase of his properties, – certain houses in the City, and some building land at Clapham and Balham, for £65,712 paid to him – after deduction of £27,800, for which they were in mortgage – partly in cash and partly in debentures and acceptances. In a few months, and still having no more than their original amount of capital, they contracted mit Sir M. Peto for the purchase of an estate known as the Spread Eagle property, in Gracechurch street, for £100,000. They had no money to pay even the deposit, but had convenient bankers, who lent them £10,000 for the purpose. Purchase not completed, because they were unable to find the remaining £90,000; contract ultimately cancelled, the Co. forfeiting £6,120 of the deposit, besides paying the law expenses. Nevertheless, early in 1866, they agreed to purchase an estate at Holloway, but were unable to complete the contract, it ended in forfeiture of £100. In March, 1866, they took a lease of some ground in Philpot-lane, at a rental of £750 a year, and agreed in expending £5000 in building thereon. Put up building, for which builder now claims £8000, and for which he holds possession of the premises, said not likely to realise £.5000.

One of the properties purchased from Hodges a building lease of a house in Limestreet, to which was attached a condition in favour of an existing tenant. Premises were rebuilt without any regard to rights of this tenant; consequence action of trespass and action of ejectment, compromised by agreement to pay £1,100 as compensation. But the £1100 never paid, constitute a claim against the Co. which awaits the decision of the court. But the reckless improvidence of these directors did not end here. On portions of the Balham estates they granted building leases, engaging to make advances to the builder as the works progressed. Thus they advanced £5000 to one builder, which amount they borrowed from the first mortgage of the property for the purpose, giving him, as further security, the building agreements. Of another portion of their property, for which they had paid £16,000, they did not make a single shilling of rent or profit during the whole of the 14 months’ of the Co’s existence. Yet were borrowing large sums, thousands of £, all this time to take up their acceptances; at the rate of 21% p.a.! Some of these bills entrusted to Hodges to get discounted, and of the produce of them nearly £1000 still unaccounted for. Since the commencement of the liquidation Hodges has become bankrupt, little chance of the amount ever being repaid. Two of these acceptances for £1000 each were handed for discount to a firm in whose hands there was an overdue promissory note for £1,500 of the Hill Pottery Co., some of the directors of which Co. were also directors of the General Estates Co. The acceptances and promissory notes respectively bore the endorsement of the several persons who were directors of both cos., and on this ground the discounters claimed the right to deduct the £1,500, the amount of the overdue note, von den £2,000, the amount of the acceptances, and sent a cheque for the balance only. Liquidators hope to compel these persons to restore the £1,500, with interest. That question stands for decision of the Court next term.

Two of the original directors retired soon after the formation of the Co; 4 others have since retired and become bankrupts; the projector is a bankrupt, and the managing director has compounded with his creditors; the bankers have obtained judgement against the Co. for £10,000; the mortgagees are in possession of the various properties; debts and liab. about £100,000; assets, whether anything or nothing, problematical. Main asset seems to be the uncalled capital, the whole of which the Master of the Rolls has ordered to be called up, and the value of that may be judged by fact that call of £2 p. share in 1866 realised the sum of £110 only. Much litigation has been, will be more in the affairs of the Co. Most of solvent shareholders sold out when they saw what Co. they were in. But they were caught. Most of the shares they sold were bought by Hodges, the projector, to keep up the price of the shares in the market. When the winding up order came, discovered that, though Hodges had bought the shares and had them duly transferred to him, he had never registered the transfers. The names of the former holders therefore still upon the register of shareholders, daher transferred to the official list of contributories. Have their remedy against Hodges, but Hodges bankrupt. Such things impossible, if shares fully paid up and issued „to bearer“.

#### Annual Average Minimum Discountrates of B.o.E. since 1856.

*1856:* £5. 19s. 6d. *1857:* £6. 13s. 5d. *1858:* £3. 4s. 3d. *1859:* £2. s.14 d.10. *1860:* £4. 3s. 10d. *1861:* 5l. 4s. 10d. *1862:* £2. 10s. 7d. *1863* £4. 8s. 5d. *1864:* £7. 7s. 0. *1865* £4. 15s. 5d. *1866:* £6. 16s. 8d. *1867:* £2. 10s. 9d.

#### National Debt. (1868)

*On 31. March 1868:* funded debt £741,190,328 und unfunded debt £7,911,100. Endlich die *terminable annuities*, by which the nation is paying off principal as well as interest. The £26,425,000, the present annual charge for the debt other than unfunded, consists to the extent now of about £4,000,000 a year of these terminable annuities. *On 31 March, 1868,* annuities expiring in 1885 amounted to £2,883,990; the life annuities sold by the Gvt. and still payable amounted to £973,548, and the annuities for terms of years £53,795; the Red Sea Telegraph Co’s annuity, expiring in 1908, is £36,000; and there are tontine and other life annuities amounting to £28,552. The total is £3,975,885 a year, equal if capitalised to nearly £48,000,000 of debt. This makes the *capital of the debt £797,000,000*.

#### U. Kingd. Bullion movement 1867.

Total Value of gold and silver bullion and specie imported into U. Kingdom, 1867: £23,821,047, wovon £15,800,159 gold und £8,020,888 silver.

### August 29. 1868.

#### Railway finance. für 1866 (Board of Trade Return.)

Capital paid up Dec. 31. 1866 (minus money borrowed on Lloyd’s Bonds, or simple contracts.)

| Ordinary (without priority of claim on Revenue.) Dec. 31. 1865. | £219,598,196 | Incr. in 1866: £8,674,433. | Total: £228,245,629 |
|---|---|---|---|
| Preference. Dec. 31. 1865 | £124,263,475 | Incr. in 1866: £10,197,623. | Total: £134,455,098. |
| Debenture Stock (Funded Debt) Dec. 31. 1865 | £13,795,375 | Incr. in 1866: £310,219. | Total: £.14,105,594 |
| Debenture Loans. (Terminable Debt payable at fixed periods) Dec. 31. ’65 | £97,821,097 | Incr. 1866: £7,244,766 | Total: £.105,065,863 |
| Grand Total |  |  | £481,872,184. |

Traffic.

|  | Gross Revenue for the year: |  |
|---|---|---|
|  | 1865 | 1866. |
| Receipts from all sources | £35,800,113 | £38,164,354 |
| Working Expenses (Steamboat, Canal and harbour expenses excluded) | 17,149,073 | £18,811,673 |
| Net Revenue | £18,651,040 | £19,352,681 |

Addition to Capital in 1866: Ordinary Stock £8,644,433. Preference: £.10,191,623. Debenture Stock: 310,219. Termin. Dbt. Loans: 7,244,766. Total: £26,394,041

Da 26¼ Mill. capital spent in 1866, while total net revenue from railways only 19¼ mill. £, the business was a losing concern, i.e. nach dieser officiellen Rechnung.

* * *

### 5 September. 1868.

#### Grand Trunk Railway of Canada. Meeting of shareholders on 27 August. ’68.

*Th. Baring M.P. in chair*, so der grosse Watkin angeblich Krankheits halber abwesend. Die Directoren (Watkin, Baring, Hodgson) widersetzen sich dem Wunsch der Railway shareholders gedruckte Register aller shareholders zu haben (so daß sie sich untereinander verständigen können.) Die shareholders überstimmen unanimously these signori directors welche die masters spielen wollen. Bei dieser Gelegenheit bemerkt, daß Watkin, der chairman, 40£ p. Woche Salair bezieht (sehr viel bei dem precairen unpaying Stand der Railway); daß dieser selbe Watkin had the management of 5 or 6 other Cos., for which he received salaries amounting to £5,000 or £6,000 a year (für jede). Another shareholder said: „It was notorious that all the officials of the Co. of Canada were connected with other Cos. whose interests were antagonistic to those of the Grand Trunk, and the result was that the proprietors of the Grand Trunk got nothing.“

* * *

### 12. September 1868.

#### The South African Gold Fields. The Colony of Natal.

Close to the colony of Natal, upon the territory of a chief friendly to England, who desires to place it under English gvt. The gold found in reefs of quartz, for 100ds of miles.

#### Wheat Importations of 1868.

Wheat Importations *of July ’68* below those of *July ’67*. Yet the total arrivals for the first 7 months of 1868 were 17% in excess of those of the same period 1867. Of the aggregate quantity of 20,706,791 cwt, *Russia* contributed 26%, *U. St.* 22%, *Germany* 16%, *Turkey* 12%, *Egypt* 12%, *Illyria* 4%, *Chili* 3%, *Denmark* 1%, Canada 1%, and other countries 3%. The supply from Russia and Germany was considerably less than that of 1867, but great increase from the U. States.

* * *

### September 19. 1868.

#### Cotton

At the close of *August* ’68 „Middling Orleans“, p. lb., 11¼d., *„Uplands“* 11d, *„Middling Mobile“* 11⅛d. At this time last year prices several pence higher for the same articles. Still the minimum nearly double that of period before the American war. At commencement of August ’68, owing to reduced stocks, there was a fair demand and trifling advance in prices, but there were heavy imports, and price of cotton fell again. »Towards the close of the month, however, there was a positive advance in value.« Dieß alles small movements. Question, ob cotton must fall definitely much lower? Dieß probable. The quantity of American cotton grown since last war seems to have exceeded all anticipation, and it is mentioned in Mssrs. Leech, Harrison, and Forwood’s circular that Brazilian cotton has been bought as a substitute for American, while East Indian, of which there is now a fair selection, it is gradually assuming a leading position, and will have in a great measure to supply the place of American until the new crop is available. The stock of cotton in this country and at sea is somewhat smaller now than it was 1867, and consequently for the present existing prices may be supported, aber nicht für Dauer mit den neu geöffneten sources of supply.

#### Land in Australia. (cultivated)

Land under cultivation in the Australian colonies, according to last returns, 2,500,000 acres, live stock: 600,000 horses, 4,000,000 cattle, 38,500,000 sheep, 400,000 pigs, total of more than 43 Millions head of stock.

#### Foreign Trade of U. Kingdom for first half years ’68 ’67 und 66.

*Imports:* *1866* £139,377,961. *1867:* £126,558,561. *1868:* £128,533,367.

*Exports.* 1866: £92,857,830. *1867.:* £87,613,484. *1868:* £84,601,157.

*The Exports* to *Foreign Countries* for the first half years: *1866:* £66,990,170. *1867:* £64,685,265. *1868:* £60,851,539. To the *Un. States:* *1866:* £15,228,220. *1867:* £11,951,179. *1868:* £10,540,940. *To British Possessions 1866:* £25,867,660. *1867:* £22,928,219. *1868:* £23,749,618.

* * *

### 26. September. 1868.

#### B. o. England. Its capital.

Its capital £14,553,000; it is not banking capital, but permanently invested at a low rate of interest in loans to Gvt. The *„Rest“* undivided Profits, which never allowed (nach langjähriger custom) by the Directors to fall below 3 Mill. £. St. Nicht *im Kapital* eingeschlossen die Buildings der Bank in London (the Bank stands upon about 3 acres of the most valuable land in the City of London), wohl aber die branch establishments in den Provinzen.

* * *

### October 3. 1868.

#### The Board of Trade Returns.

##### A.) Exports

*For month August 1868*

£16,427,597 being £679,328 more than in July (’68) und £1,777,000 more than the average of the 5 months ending mit July.

Total Exports des Jahrs to end of August 1868: £116,777,023, being £4,279,890 or 3½% less than for the corresponding months of 1867, und £8,488,797 below the total of the 8 months of 1866.

Cotton Manufactures, 37½% of the grand total of our export trade: Important decline in the value of piece goods of all kinds for first 8 months of 1868, compared mit the same period 1867. *End August 1868:* (8 months) £32,268,723 against £35,312,134 (1867) reduction of £3,043,411, or 8½% on the value. But as to *Quantities exported:* yards 1,900,260,705 shipped to end August 1868, against 1,789,176,406 yards same time 1867, *increase* of 6¼%. More in quantity, less in value. Difference against us apparently equal to 14¾%. But much of this difference explained by difference in price of material. Z.B. *„Middling“ uplands* average quotation for this sort at Liverpool von *1st Jan. to 31 August 1868* was: 10.364 d. p. lb against 12.157d. p. lb same period last year. Reduction exactly 14¾%.

*Exports of Cotton Yarn:* for *8. months end. August. ’68:* 114,202,513 lbs, value £9,846,037; increase of 8,484,358 lbs in quantity, and also of £56,995, or ½% in value. Daraus folgt daß spinners of cotton yarn *only* have had – owing to augmented shipments of this article – the advantage over the manufacturers who weave the yarn into piece goods.

Export of woollen cloths etc, during the 8 months, considerable falling off, compared to 1867. *Reduction in value:* £1,224,164, being 32%, whilst the decline in quantity is only 24%.

| Shipments | of manufactures of worsted and wool and other mixtures moderate augmentation on the whole. |
|---|---|
| dtto | of Woollen and Worsted Yarns increase over 14%. |
| Dto | Linen Yarns and Linen Piece goods decrease of about 10% in value. |
| Dto | Iron and unwrought steel decline of about 10% in value. |
| Dto | Thrown Silk advanced von £326,128 to £716,999. |

So improvements of a few other articles, but not of large totals. Altogether Export of increased quantities at a reduction in values.

##### B. Imports. (to end of July. Computed real value. Quantities to end August.)

Imports for July 1868: £21,487,632, being £859,075 more than *June ’68* und *Increase* of £1,224,000 on the average of 5 months ending June 1868.

dtto £2,271,789 in excess of imports July, 1867 und £846,068 over July 1866.

Total Imports for 7 months ending July 1868: £.132,283,806, *Increase* of £3,347,906 gegen same period 1867 und *Decrease* of £11,260,953 period of 1866. In 1866 the figures much affected by high price of raw cotton.

Imports of Wheat for first 7 months ending July 1868: £15,320,539, being £2,928,440 more than same period 1867.

Quantities of Wheat for August 1868: Improved harvest prospects have checked imports from all parts, and only 2,012,374 cwts were received against 3,287,469 cwts August, reduction of nearly 40%.

Imports of Cotton to end of July 1868: £34,407,467 against £35,769,400 same time 1867.

Dtto Quantity received to end August 1868: Cwts 7,500,221 against 7,391,680 in 1867.

Dtto Quantity Receipts in August 1868: Diminution of 231,000 cwts or 23% against August 1867, falling off chiefly in supplies from British India and Un. States.

### October 10, 1868.

#### Influence of Commercial Depression on Railway Revenues.

Depends from what source Revenue of Railway prinicipally depends. 1) *Passenger and Mails.* Passenger traffic least prejudiced during commercial stagnation. 2) *Merchandise and live stock* diminished, but to less degree than minerals. 3) *Minerals:* most affected. This shown by the following list ⦗a railway being described as belonging to one or other class, je nach Proportion worin one of the 3 descriptions prevail in its traffic⦘ of Dividends first Half years 1868 und ’67. Only exception Lancashire und Yorkshire; wo Verbessrung in Folge von spezifischen Umständen, besonders better management. (Sieh den *Comparison* folgende Seite):

| A) Passenger Lines. |  |  |
|---|---|---|
|  | Dividend: First Half Year. |  |
|  | 1868 | 1867 |
| South Western | 4%. p.a. | 3¾%. p.a. |
| South Eastern | 2¼ | 2 |
| Metropolitan | 7 (durch faule means in both years) | 7 |
| Brighton | shows improvement. |  |
| B) Passenger and Merchandise Lines. |  |  |
| London and North Western | 5¼%. p.a. | 5¼ p.a |
| Grt. Northern | 4 ¼ | 4½ |
| North British | Stationary |  |
| Great Eastern | shows Improvement. |  |
| Grt. Western | 1¼% p.a. | 1¼ p.ct. p.a. |
| C) Merchandise Lines. |  |  |
| Lancashire and Yorkshire | 6¾ P.C. p.a. | 6½ p.c. p.a. |
| Midland | 5 | 5½ |
| D) Merchandise and Mineral Lines. |  |  |
| North Eastern (Berwick) | 4½ p.c. p.a | 5% p.a. |
| Sheffield | nil | 1 |
| Caledonian | 1½ | 5¼ |
| Glasgow and Southwestern | 4½ | 5½ |
| E) Mineral Lines. |  |  |
| North Staffordshire | 2½ p.ct. p.a | 3 P.C. p.a |
| Monmouthshire | 4 | 5 |

A much greater falling off has occurred in these 2 last lines. When compared mit 1866 it will be seen that much of the depression experienced in 1867.

#### London, Chatham, and Dover Railway und Landed Property.

That line one [of] those Southern lines which have doubled and quadrupled the value of property in the districts they have passed through, and nearly or quite ruined themsels. landlord extorts £150, where he previously asked £.50.

#### The Wool Trade. (Windeler et Bowes. Circular 8 Oct. 68)

Improvement in sales of *October*. Must have beneficial effect upon trade in interior up to the opening of next sales, on or after *19*. November . Demand for manufactured goods for export continues limited. So lange not to be expected – as this continues – higher quotations of wool. But we think prices have passed the lowest point. For the November sales 56,400 bales are here or afloat; further arrivals, chiefly Capes, zusammen mit 35 or 40,000 Bales, held back or withdrawn from last series, will bring total quantity to come forward to nearly 110,000 bales, about same as the corresponding series 1867. Well conditioned, staply wools will be scarce as the selection of Australian includes much of the excessively faulty wool, found unsaleable during August. Capes will form the chief feature, and a large proportion again extra scoured. These lately in better demand. The proportion of medium clothing wool will be large.

* * *

### October 17. 1868.

#### Royal Bank of Liverpool. Keeping things in dark to make Matters Pleasant. (failure Oct. 1867)

*On 24. Jan. ’67* declared dividend of 8%, and reported to shareholders that whole of capital und reserved fund of £75,000 intact. *In Oct. ’67*, 9 months later, whole of capital and reserve fund lost u.s.w. Harmood Banner, one of the most eminent accountants in Liverpool, tried to hush up, in order to „avoid publicity“. 12 months ago shareholders appointed Comm. of Investigation. At length, Mr. *Watson*, chairman of that committee, determined to present report; no sooner commenced reading it than interrupted by Banner. (in shareholders meeting convoked to hear the report.) Protested in name of liquidators. Warned them, the revelations in the report would be prejudicial to their interests etc; they might drive several creditors into Bankruptcy Court (während durch Stillschweigen diese Kerls andre beschwindeln und dadurch die Co. zahlen können); in consequence might have to pay other call of £5 p. share. *Horsfall* M.P. (one of the shareholders) told Banner: „Yes; it is your policy to keep things in the dark, and you have raised yourself to eminence by it; but it will not do in concerns like this.“

### October 24. 1868.

#### The Merchant’s Co. (lim.) and the Criminal charge against the directors.

1865 Co. formed to take over the business of Mssrs. Lane, Hankey et Co under the name of the Merchants Co. (lim.) The Prospectus issued in November 1865 with Richard Stuart Lane, Horace Edward Chapman, and Frederick John Helbert Helbert, the partners in the old firm, as directors. The partners undertook to liquidate all the debts and liabilities of the firm. They were to receive £62,500 in debentures and paid up shares of the Co. for the goodwill of the business only; they guaranteed to the shareholders 10% upon the paid up capital for a certain number of years. Total amount of capital paid upon the shares £45,000. In October, 1866, after about 10 months’ existence, the Co. stopped payment. Mssrs Lane, Hankey, et Co. had received from the Co. debentures for £25,000, and shares with £15 per share paid to the amount of £37,500, being the amount to be paid for the goodwill. On 22. August, 1866, a couple of months before the Co. stopped payment, the partners filed a deed of inspection under the Bankruptcy Act , for the winding up of their affairs. The debts of the partnership, as then sworn by the partners, were:

| Debts of Lane, Hankey, et Co. | £.282,498 |
|---|---|
| Debts of R. J. Lane | 69,315 |
| Do. F. J. Helbert Helbert | 13,735 |
| Do. H. E. Chapman | 6,245 |
| Total | £371,793. |

On failure of Co., a committee of shareholders appointed to investigate its affairs, mit Chairmen: *Benjamin Moore*, of Moorgate Chambers, he had 100 shares, on which he had paid 1000£. Committee desired to examine the books of the partnership. But Lane, Hankey, and Co. refused to give up their books, or produce them for inspection. Co. are still in liquidation und die Co. inserted in the list of creditors of Lane, Hankey et Co. for £45,000 and upwards, being the whole of the paid up capital of the Co., of which, it seems, they had become possessed, in addition to the £62,500 for the good will, and in addition also to £10,000 of acceptances which the Co. had given for their accommodation. No dividend hitherto paid under the deed of inspection. Nach 2 J. quiescence der shareholders, Mr. Moore laid certain evidence before the Lord Mayor, and obtained summonses against Stuart Lane, Chapman, and Helbert, under einer Clause des Acts von 1861, for having „unlawfully made, circulated, and published a prospectus etc“. Person guilty thereof, nach diesem Statut, liable, if convicted, to penal servitude for 7 years. On 2 October the defendants appeared, obtained adjournment on ground that an analysis of the accounts was being prepared by an accountant employed by the defendants. On 9. Oct. defendants again appeared. Der Advokat des Ankläger Moore, G. Lewis, jun., declared that nach der Einsicht der analysis des account alles all right, daher Moore als Ankläger withdrew the summons. *Vallance* (counsel für Lane) und *Metcalfe* (für Chapman und Helbert) „*thanked Mr. Lewis* for the frank way in which he had acquitted those gentlemen of any fraudulent motives etc“ „freed their clients from imputation“ etc. Andrerseits complimentirten die Sachwalter den Clienten von Lewis als „perfectly honourable gentleman … put forward by other persons behind the scenes, whose real object was to damage his clients“. Lord Mayor jedoch doubted. By a few questions he ascertained that Moore, besides being so perfectly satisfied with „the analysis of accounts“ had stipulated for the *payment of the money he had lost*. Lord Mayor required „the informations on which he had acted in granting the summons to be read in open court.“ Diese informations on oath filed in this case state ugly facts. Barlow, the colonial manager of the Merchants’ Co. from its formation until stopping payment, had sworn distinctly, that statement in prospectus, that Lane, Hankey et Co had made profits during 6 years previous to 1865, was false, for they were in 1865 hopelessly insolvent, had been so for years, annual losses instead of profits making. He further deposed on oath that on 2nd May 1866, at office of the Co., H. E. Chapman informed him that the firm of Lane, Hankey et Co ought to have stopped payment in 1861; that when he (Chapman) joined them in June 1863, the said R. S. Lane declared there was £65,000 capital in the concern, „instead of which there was £75,000 the other way, and the concern was completely rotten.“

#### Joint Stock Cos. Parliam. Return on 31st May 1868.

| 1863: | registered | 790 Cos., | with *nominal capital* at | £139,988,242 |
|---|---|---|---|---|
| 1864 |  | 997 Cos, | with *nom. capital* | 237,437,084 |
| 1865 |  | 1,033 Cos |  | 205,391,818 |
| 1866 |  | 762 |  | 76,824,823 |
| 1867 |  | 479 |  | 31,444,982 |
| 1868 | von 1st Jan. bis 31 May | 203 | registered mit | £13,896,182 Unlimited Cos. 9. |

Objects – Rede von denen zwischen 1st Jan. bis 31 May 1868 – so various as possible. Z.B. 1) supplies Colyton mit gas, 2) Poole and Cherbourg Steam Packet Co., 3) Eastbourne Baths and Laundry Co., 4) Liverpool Merchant Tailors’ Co, and so forth. N. 1 (Colyton gas) had at date of last return 19 shareholders, who had taken 73 shares out of £300 created, and yet Co. returned as „still in operation“. N. 2 (Poole and Cherb. Steam Packet) originally 108 subscribers, for 800 shares, representing £4,000 capital, at the last return only 131 shareholders, who had paid upon their shares £1,275. This concern do. described as „still in operation“. N. 3 (Eastbourne Baths etc), described as „having no place of business“, aber nominal capital of £10,000 in 1000 shares. This Co. supposed to be „still in operation“, but „no return“ as to number of shareholders, calls received, calls made, shares taken. N. 4 (Merchant Tailors’ Co) is being „wound up“, which means, we suppose, that it is no Co. at all. Von den 393 (in 1868) 4 are being termed as „wound up“, 5 as „in operation“, 341 Cos. supposed to be „still in operation“. Of the 9 „unlimited“ no account. Hence seem to stand on no better footing than the unlimited.

#### Seignorage on Coin.

In all the mints of the world except England. In *Paris* mint 2%, *Australian* mint 7,5 on large parcels, and 10% on small ones; in the Indian mints 1%. In English mint (London) nominally gold is coined free, aber practice of restricting tenders of gold to £10,000 tends to fix a duty of 1½d. p. oz. – i.e., the difference between coin gold £3. 17s. 10½d. per oz., und the price paid by the B.o.E. for gold bullion, £3. 17s. 9d. which is equal to 0.16%.

#### Conversion of Iron into Steel.

Several years since Bessemer carried to successful issue the *pneumatic* process which bears his name for the manufacture of steel from pig iron. His process demands iron of the first brand, as is unequal to the conversion of iron of inferior quality, charged with impurities of phosphorus and sulphur in large quantities.

Thus, until very recently, no marketable steel has been produced from Cleveland or Northamptonshire pig. Now process patented by Heaton, of the Langley Mill, in the Erewash valley, by which inferior iron made into first class steel, thus utilising for the higher purposes of manufacture vast deposits of ore hitherto condemned to the lowest rank. The process is chemical not mechanical, great economy of time and labour appears thus secured. Nitrate of soda is the agent employed. Tensile and resisting strength of steel manufactured by this method. Saving in cost of production said to be several £ a ton.

### October 31. 1868.

#### The Money Market.

Impression of soon rising money value. Recently increase in the number of good bills offering. Partly due to improvement in *Iron Trade*, which has imparted more cheerful feeling in other equally important branches of business. *Foreign and Colonial Loans* lately subscribed, having provided an outlet for some portion of the surplus capital, are gradually, if slowly, affecting the money market. There is a decided pause in the Continental demand for English bills, and the movements occurred during the last fortnight in the rates of exchange on France and elsewhere are causing an export of gold from this side, despite the enormous accumulation of the precious metals held by the Bank o. France.

At the turn of each quarter, owing to the payment of dividends and salaries, some large reductions in the reserve and bullion generally take place.

|  | Total coin et bullion | Total Reserve of Notes und Coin | Proportion p. Cent of Reserve to Liabil. of Bk. Dept. | Bank Rate. |
|---|---|---|---|---|
| Jan. 23. 1867. | £18,892,000 | £10,973,000 | 43⅛ | 3½ |
| April 24. 1867 | 19,337,000 | 11,212,000 | 45½ | 3 |
| July 24. 1867 | 22,772,000 | 13,769,000 | 53 | 2½ |
| October 30. 1867 | 22,697,000 | 13,043,000 | 51⅞ | 2 |
| Jan. 22. 1868 | 22,201,000 | 13,332,000 | 50⅛ | 2 |
| April 22. 1868 | 20,527,000 | 11,587,000 | 46¼ | 2 |
| July 22. 1868 | 20,077,000 | 12,586,000 | 48⅞ | 2 |
| Octer. 28. 1868 | 19,845,000 | 10,669,000 | 43⅛ | 2 |

Vergleich Oct. 28. ’68 mit 23. Jan. ’67, *increase of £953,00[0]* in *total coin and bullion* und *Decrease of £304,000* in reserve of notes and coin; but on comparing the Reserve mit Liab. des Bank Department – which chiefly guides directors in fixing rate of discount – the relative strength exactly the same. Yet Bankrate of Discount in Jan. ’67: 3½% und in Oct. 28 only 2%. Culminating point, or strongest position of the Bank, 25 Sept. 1867, when Reserve of the Bk. Dpt. 57⅝% of its liabilities. Since then the total coin and bullion, and the reserve of notes and coin have diminished £4,603,000 und £5,371,000 respectively. Verhältniß von Reserve to banking liab. now 14½% less strong than on 25. Sept. 1867. Vgl. this week’s return mit that of 22 July ’68, coin und bullion have diminished £2,232,000 und Reserve of notes und coin £1,917,000, while Reserve, in proportion to liab., is 43⅛% against 48⅞%, difference of 5¾%. When the reserve sinks below 33% or ⅓ of its Liabilities, the Bank usually raises its rate of discount.

#### Manufacture of Iron and Steel. Heaton’s Process (Patents).

For many years positive, though scarcely recognized contest, in progress between mechanical and chemical improvements in this department. Half a century ago mechanical progress was represented by the invention of *puddling*, and its details. Almost simultaneously the discoveries of new metals by the great chemists of the last generation suggested combinations with the ores of iron by which the product was improved. Voltaic and galvanic electricity were resorted to upon theories that had science, if not success, to recommend their trial.

Bessemer process, for producing the best iron and hardest steel. Crude iron contains, in combination, a certain amount of carbon. The Bessemer process decarbonises the metal by forcing through the converting vessel, in which it is fluid, powerful jets of atmospheric air, the oxygen in which produces combustion of the carbon contained in the iron. The result is intense heat, and the production of steel ready to be poured into the ingot moulds. Process defective in 2 respects. It does not wholly supersede *puddling*, nor does it, in the case of the poorer ores, get rid of the sulphur and phosphorus they contain. Only, particular ores can be relied upon to produce unexceptionable metal by this process. Puddling unless perfectly efficient, will yield a product comparatively fibreless. In fact, iron is being constantly produced to which it would be impossible to give any fibre. Bessemer process owes its efficiency as much to the quality of pig iron used as to the speciality of operation.

Heaton’s process does not exact the absence of sulphur and phosphorus. Crude iron is converted at once into wrought iron and steel, whatever the impurities it contains, and it supersedes altogether the process of puddling. This done, not by the mechanical application of atmospheric air, but by the chemical effect of nitrate of soda in the „patent converter“. A mixture of crude nitrate of soda, with siliceous sand, being introduced into the converter, a reaction speedily commences. Nitrous flames escape, with copious fumes produced by the escape of steam, that carry away in suspension a portion of the flux. Then follows an intense deflagration; and, when all is over, and the converter emptied of its contents, the produce of steel is found to have its impurities eliminated, while carbon reduced to requisite proportion. The chemical operation is this: The nitric acid in the nitrate imparts oxygen to the impurities in the iron, and converts them into compounds with the sodium, and they are carried off with the sodium in the slag. The action of the sodium is a great advantage over the oxydising methods in common use.

The wrought iron produced by the process in presence of Prof. Miller bore a rupturing strain of 23 tons per □ inch and an elongation of ¼ of its length; and the tilted steel bore a tensile strain of 42 tons per □ inch and an elongation of  1/12 of its length; while the appearances of the fractures were uniformly fibrous. Some hard tools have been made of the steel and also of the iron, the tests of which were very severe, but which they bore with perfect success.

By superseding puddling, great saving effected in labour and cost of plant; by the power it gives of using crude iron from the ores richest in impurities, manufacture can be carried on in situations where otherwise it would be impossible. Superior article at cheaper price. Wichtig für railway, shipowners, armour plated navy etc. The cost of the converters and the means for carrying out the process absolutely inconsiderable in relation to the results obtained.

#### The Premium of gold at New York. (Circular of H. Clews et Co. of New York. d.d. October 14.)

Tendency of gold premium strongly downwards, the price this week having touched 137⅛ against 144½ at date of our latest advices. Absorption of the large amount of bonds sent abroad 2 and 3 months ago – being contrary to general expectation, and having settled an adverse trade balance threatening to call for a heavy export of gold in addition to our previous unprecedented shipments – has revived the old reliance upon shipment of bonds for the settlement of adverse foreign balances. This unexpected foreign demand for bonds, together with the present upward tendency of quotations abroad, induces expectation that the large amount of interest payable to European bondholders on November 1 will be, to a large extent, covered by remittances of bonds, which alleviates another source of misgivings as to the adjustment of our foreign balances. Hence vigorous reaction from the late upward speculation (nämlich auf Steigen des Prämium on gold). Dazu prospect of unusually liberal shipments of wheat and corn to Europe late in the season is also steadily making itself felt.

* * *

### November 7. 1868.

#### Money Market.

Trade so bad with stagnant money market that revival in demand und even increase in Bankrate now welcome as a signal of relief. Discount Houses acting at present with great caution, and refuse to take *long paper* at anything like the rates current a week ago. Preference given to short bills, the rates for which have been less affected during the week than those for bills having 4 or 6 months to run. Evidence of increased demand for money besonders reduction at B.o.E. of £1,298,000 in the Private Deposits.

#### Board of Trade Returns.

Exports of British and Irish Produce.

|  | 1866 | 1867 | 1868 |
|---|---|---|---|
| For Month September | £16,671,078 | £16,145,584 | £16,927,000 Excess of £782,000 über Sept. *67* und £256,162 über September *1866*. |
| Total Exports für 9 mths. end. Sept. |  |  | £133,704,000, being *Less* £3,498,000 than *1867* und £8,232,000 *1866*. |

The Exports *of Sept. 1868* exceeded the *average* of the 5 previous months by £1,856,000, or 12½%; and each of the last 3 months gives a fair increase on the preceding month.

Imports. Computed Real Value.

|  | 1866 | 1867 | 1868 |
|---|---|---|---|
| For month August | £22,480,009 | 20,748,046 | 20,278,000 |
| Total Imports for 8 months end. August. |  |  | £152,562,000 |
|  |  |  | *Increase* on same *period 1867* of £2,878,000 *Decrease* on same pd. *1866* of £13,463,000, the chief fluctuations being in cotton and wheat. |

Receipts of Wheat only for 12 months end. August 31, 1868: cwts 36,333,087 or 8,384,559 qrs – increase on the preceding 12 months of 26¾%. For *September 1868* (first month des neuen Herbstjahrs. Von 1 Sept. bis August 31 immer) *decrease* in the imports 35¾ on same time 1867.

#### Cotton Trade.

It is unfortunate that this trade should be rendered more risky and hazardous by the intervention of a class of mere speculators, who, coming between the merchant and manufacturer, have not a true or legitimate interest in its welfare or stability … the class of transactions so often observed in Liverpool … are not improperly described as gambling. Erhöhen und vermehren obviously die Preis fluctuations. … The high prices of the last 5 or 6 years have restricted the sales of goods in every market, and been the means of adding to the number of mixtures, composed of cotton and other fibres, which will for the future compete largely with mere cotton goods.

The cotton circulars of October contained the completed statistics of the American crops for the season 1867–68, taken from recent New York papers.

Grand Total of cotton growth in Un. States. (round numbers)

| 1867–1868 | bales 2,577,000 | Increase over 10% compared mit 1866–67. |
|---|---|---|
| 1866–1867 | 2,329,000 |  |
| 1865–1866 | 2,329,000 | but hierin included a quantity belonging to 1861–65, of which no records were taken. |
| 1868–1869 | *Estimates* vary from 2,500,000 to 2,700,000 bales. |  |

Present state. (Circular of Leech, Harrison, and Forwood.)

|  | October 31. 1868. Bales. | Oct. 31. 1867. Bales |
|---|---|---|
| Stocks in Liverpool, London, Havre. | 628,875 against | 809,489 |
| At Sea for these ports. American | 29,000 | 21,000 |
| East Indian etc | 289,513 | 191,750 |
| Total Stock in hand and at Sea | 947,388 | 1,022,239 |

These figures shown trifle against this year, but are not sufficient to warrant the difference shown in the quotations, which are *„Middling“ Orleans* 11¼d. p. lb Oct. 68 against 9d. p. lb Oct. 67 und *„Fair“ Dhollera* 8¼d. (Oct. 68) gegen 6⅝d. (Oct. 67) *American* cotton may be considered statistically of strong position, since ⅔ of the deficiency in the Liverpool stocks of that description. The supplies, however, known to be on the way, not only of American, but other hands, larger than at this date last year. Moreover, the accounts given in the Manchester trade circulars of gloomy character; resort to „short time“ spoken of as inevitable.

It is significant that the spasmodic upward movements in cotton so frequently of late have had no effect and received no response or encouragement in the markets for manufactured cloth, either in this country or abroad. In fact, the Manchester quotations for cotton goods, despite an advance of about 25% on the raw material as compared with 1867, are now (as stated by Mssrs. G. Fraser, Son, and Co.) unchanged, or only nominally dearer than those ruling 12 months ago, so that the whole difference is practically lost by the trade.

#### Cotton. Liverpool Market. Nov. 6. (’68)

Rise of ⅛ to ⅜d. p. lb. Sales of week 121,500 bales, davon 26,500 taken on speculation, 26,750 for Exportation. *Imports* 40,000 bales. Miserably unsatisfactory accounts from East. On 28 Oct., with Exchange 1s. 11⅝d., prices from Bombay for an 8–4lb. Shirting net home only 9s. 2d. p. piece, and from Calcutta 8s. 9d. p. piece, showing a loss on the present unrenumerative rates.

#### Winding up Companies in Chancery.

The *Official Judicial Statistics for 1867* show 110 orders were brought into the chambers of the Masters of the Rolls and Vice Chancellors for winding up Cos. List of contributories were proposed, from which 357 names were excluded; 9,343 persons were included in the lists. *Calls* were ordered in the year amounting to £4,497,831. *Dividends* were ordered to be paid to £7,310,339. The calls made in 1866 were £1,810,834.

* * *

### November 14. 1868.

#### The Council of Foreign Bondholders.

Dieser Schwindel unter Baring’s Anstiftung. Isidor Berlinerblau Gerstenberg vorgeschoben als Mauerbrecher.

Angeblicher Zweck: durch pressure upon British Gvt. die Foreign Gvt., die Schulden bei Engländern contrahiren, zum Zahlen zu zwingen (Also, auf Rußlands etc Anstiftung, England in French War zu verwickeln) Ausserdem: An office for the promotion of investments of British Capital abroad. Schließlich: Mittel der Speculation für die grossen Finanzschwindler.

*Austria* has taxed foreign debt 16%, *Italy* 8%.

In the last few years we have entered into extensive loan operations with Mahommedan nations, which have got over their objection to the principle of borrowing abroad. Turkey and Egypt now pay millions a year in interest; Morocco has given a mortgage upon her resources; and Tunis has already become insolvent. In this respect the East has profited by the instructions of the West, and we have been almost startled at the rapidity with which a debt has been scored up. Peru deals in loans with vast sinking funds. New Granada gives land to those who themselves never will or can occupy one acre. Russia grants a State guarantee to lines mortgaged as security. State after State issues loans below par with the varied inducements that appertain to drawings.

In the cause of time many circumstances *indispose* the issuing houses to *act* in favour of the holders of a loan. ⦗Und darum, die issuing houses, Baring, Bonar, Thompson etc die instigators und leading members des proposed Council⦘. Many recent loans have been issued *on Commission*. The issuing firms are in such cases to be regarded rather as having for clients the Governments *on whose account they act than the public whom they invite to subscribe*. Other houses frequently act as the *official agents of the loan-contracting* Gvts. In fact, the relations commonly established between the issuing houses and the Gvt. for which a loan is made may be looked upon as leading to arrangements under which forbearance in case of difficulty is inevitable.

#### Heaton’s Direct Process for Nitrate Steel.

Heaton of Langley Mills, near Nottingham. His operation, based upon true chemical and metallurgical principles, calculated to supersede the mechanical appliances which involve the outlay of large capitals, whilst the poorer ones cannot be made available at all. Practical man daher *gegen* die Sache, theils überhaupt against improvements as innovations of no practical use, theils *speziell* wegen der *„Disturbance of establishments in which fortunes are invested“*. Daher die Intriguen (der Bessermeriten) gegen Heaton. Ein Contemporary – *„Engineering“* (of 7 Nov. 1868) macht daher allerlei lausige Bedenken. The crude steel produced by the use of nitrate of soda is described as of extremely crude quality, containing hardly more than 97% of pure iron, and nearly 2% of carbon.

Falsch. The crude steel contained a good deal less than 2% of carbon; and, when it was converted into steel iron, less than 1% of carbon. *„Engineering“* has omitted to state what amount of sulphur was removed by the process, while, if any phosphorus was left in the crude steel, it was obviously not such as to injure the quality. *„Engineering“* next says that phosphorus and sulphur are removed in puddling steel, and that the puddling process is cheaper than the use of nitrate. Statement incorrect. Besides, the great *waste of iron in puddling* omitted from the calculations. The commoner ores, fullest of the impurities of sulphur and phosphorus, have not all their phosphorus and sulphur removed by puddling. They cannot be removed by mechanical operations only.

Only the purest ores are available for the Bessemer process. The Heaton supersedes puddling altogether, thus supersedes much expensive labour, utilizes the poorest ores, deprives them of their impurities more effectually than manualwork, with little or no waste of metal in the operation. Another allegation is that nitrate steel is not more uniform in quality than puddled steel. But it is uniform; puddled steel extremely inequal in quality, taking large quantities. With respect to the proportion of slag to the yield of crude steel, Prof. Miller calculated that the maximum could not have exceeded 23% of the weight of the molten metal experimented upon, so that the 12.6% of iron in the slag could not be more than 3% of the iron operated on. Mr. Heaton has since ascertained by direct experiment that the quantity of slag produced is but ⅓ of the amount estimated by Dr. Miller as the possible maximum; but, then, Heaton no longer uses an admixture of lime. The percentage of iron lost in conversion does not, therefore, exceed 1%.

Then „Engineering“ speeks of the cost of Nitrate of soda. In certain countries its supply boundless. Merchants and shipowners are not the men to neglect an article for which there will be good demand. If dear, only temporary. Its cost, besides, fully compensated by the smaller capital required in the first instance by way of plant und die suppression of a most costly and painful labour, out of which most of the difficulties of ironmasters with their men have arisen, and in the use of the impurest ores. Heaton’s processes are an advance in iron and steel manufacture, equal in interest to puddling process and Bessemer’s process.

#### Cotton Trade. (Circular of Stokes, Mc Haffie et Co)

At this period last year (1867) there was a far larger margin between price of cloth and cotton than now exists, and yet cotton fell 15 to 20% before the end of the year.

#### Invention patented by W. T. Read, Old Broad street, City, for the better application of bisulphite of lime in brewing Trade.

This stuff used now largely in brewing trade to control fermentation and prevent acidity etc. Saves large amount of labour (Read’s process) performs so process, till now clumsy, perfectly. Our annual exports of beer and ale now nearly 2 Mill. £. St.

#### East India Irrigation and Canal Co.

Arrangements made between its directors und Secretary of State for India (subject to confirmation at a meeting of shareholders) wodurch the Co’s undertaking in Orissa to be surrendered to Gvt. in consideration of sum in cash equal to the whole paidup capital and 5% interest thereon (so that each shareholder will receive 1£ Premium on 20£ paid upon each share) and also £50,000 to cover compensation to the managing body and officers.

* * *

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[^lic]: Text nach MEGAdigital (Berlin-Brandenburgische Akademie der Wissenschaften), MEGA² IV/19, Lizenz CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/); der editorische Apparat der MEGA ist nicht wiedergegeben.